Gold investors who entered the market at the end of 2023 or early 2024 have seen substantial growth in the value of the precious metal this year. Starting at $2,063.73 at the beginning of the year, gold has broken multiple price records, with the most recent peak at $2,472.46 per ounce on July 17. Despite a slight dip since then, the price remains high, indicating the potential for further increase in the near future.
Investing in gold, especially for beginners, raises questions about when the price might change again. While accurately predicting the cost of gold is challenging in today’s dynamic economic environment, there are specific upcoming dates that could influence the price movements. Let’s explore three significant dates to keep an eye on:
Key Dates for Potential Price Changes
August 14, 2024
On August 14, the release of inflation numbers by the Bureau of Labor Statistics could impact the price of gold. Gold is commonly used as a hedge against inflation, so a rise in inflation rates could lead to increased investor interest in gold, potentially driving the price higher. Conversely, a decrease or stabilization in inflation rates might result in a price drop, although past trends have shown that a cooling inflation rate may not always correlate with a decrease in gold prices.
September 6, 2024
The fluctuation in the unemployment rate, as indicated by the most recent report, can trigger changes in the stock market, affecting the price of gold. With the next unemployment report scheduled for release on September 6, investors should anticipate potential price movements. Given that the unemployment numbers are typically disclosed on the first Friday of the month, the impact on gold prices may extend to September 9 and 10 as well.
September 18, 2024
The Federal Reserve meeting scheduled for September 17 and 18 will be closely watched by investors. Speculation surrounds whether the Fed will implement its first cut to the federal funds rate this year and by how much. Any decision made during the meeting will have a cascading effect on various assets, including gold and silver, potentially leading to significant price fluctuations.
Conclusion
The year has shown a consistent upward trajectory for the price of gold, marked by record-breaking highs since January. However, upcoming events such as the inflation report on August 14, the unemployment report on September 6, and the Federal Reserve meeting on September 18 could introduce further changes. Investors are advised to stay informed and consider entering the gold market before prices escalate excessively. It is recommended to limit gold holdings to 10% or less of a portfolio to maintain growth potential across a diversified asset mix.
