Gold News Headlines Today Live Gold Price News from MetalsDaily com

When the prices of stocks, bonds and real estate drop sharply, gold may hold its value—and can even appreciate as nervous investors rush in to buy. “Let’s start macro, gold is your safety play, so the more people feel nervous or uncertain, the more gold is viewed as a safe haven,” says Matt Willer, a Phoenix Capital Group Holdings partner in Denver, Colorado. “The reality is we are littered with uncertainty. We have the tail of inflation, tension around the world, an election year and elevated interest rates, which all perpetuate the flow of funds into gold.” If you do choose to invest in gold, the commission adds, it’s important to educate yourself on safe trading practices and be cautious of potential scams and counterfeits on the market. Among sources of uncertainty today are geopolitical tensions — which escalated over recent days with Israel’s deadly strikes in Lebanon. And the ongoing wars in Gaza and Ukraine have continued to fuel fears about the future worldwide.

Crude Oil retreats slightly at start of Thanksgiving week as focus shifts to OPEC+ meeting

But interest in the asset has grown after June’s softer inflation data and some recently dovish comments from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year. Markets are pricing in 100% odds of a rate cut in September now, according to futures trading tracked by the CME FedWatch tool. Some experts also attributed the rise in gold prices to geopolitical uncertainty and unease surrounding the coming U.S. presidential election. A perception of global instability often induces investors to purchase gold as means of safeguarding their funds in a millennia-old asset viewed as immune to major swings in global economic performance, they added. Inflation, geopolitical uncertainty and central bank activity are among several factors pushing the price of gold to its recent peak performance.

1. Countless factors go into determining the current spot price of gold at any moment in time.
2. But interest in the asset has grown after June’s softer inflation data and some recently dovish comments from Federal Reserve Chair Jerome Powell combined to raise the odds of rate cuts coming this year.
3. When you hold a diversified mix of different assets, including gold, varying returns can protect the value of your investments.
4. From 1980 to 1984, annual inflation as measured by the consumer price index averaged 6.5%, but gold prices fell by an annual average of 10% over the same period.

Gold jumps to record above $2,460 an ounce on hopes Fed will soon cut rates

China ranks atop the list of nations seeking to bolster their gold reserves as a means of reducing its dependence on the U.S. dollar. Until May, the People’s Bank of China had purchased gold for 18 consecutive months. Rae Hartley Beck first started writing about personal finance in 2011 with a regular column in her college newspaper alpari review as a staff writer. Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 bylines in prominent publications including Money, Bankrate and Investopedia on all things personal finance.

Similarly, Eric Croak, CFP and president of Croak Capital, a wealth management firm in Toledo, Ohio, says a “combination of specific factors” have spurred gold’s soaring price, but one factor may weigh more heavily. Gold futures advanced 1.7% to $2,471.1, topping the previous high of $2,454.20 reached May 20. This shows that people have always been fascinated by gold and by its rarity, durability and beauty. Central banks are in the midst of a gold buying spree that could continue through 2025, according to Goldman Sachs.

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That’s a tick up from January’s 2.4% increase, according to Department of Commerce data released last month. The rise in prices comes amid US Treasury Secretary Janet Yellen’s visit to China to discuss financial stability in US-China relations, including what Yellen called the overproduction of Chinese electric vehicles. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. A potential re-election of former President Donald Trump could involve a 10% tariff on foreign goods and a four-year plan to reduce essential Chinese imports. This could complicate the Federal Reserve’s task of lowering inflation to the 2% target and strain relations with China, negatively affecting Gold’s demand outlook. The Russia-Ukraine conflict in 2022 and the Israel-Hamas dispute in 2023 underscored Gold’s appeal as a safe-haven asset in uncertain times.

Gold Forecast and News

The precious metal has increased more than 20% this year, peaking at a record of more than $2,500 per troy ounce. Goldman Sachs Research forecasts the price will reach $2,700 by early next year, buoyed by interest rate cuts by the Federal Reserve and gold purchases by emerging market central banks. The metal could get an additional boost if the US imposes new financial sanctions or if concerns mount about the US debt burden. Recent gains for the precious metal are largely credited to ongoing economic uncertainty, geopolitical tensions and strong demand from central banks around the world. Gold prices hit all-time highs earlier this year before pulling back as the prospect of higher-for-longer interest rates dampened investor enthusiasm for the precious metal.

They also pointed to purchases of gold reserves among central banks, as well as persistent demand from investors aiming to diversify their portfolio and hedge against global unrest. Investor interest in gold is rising, which isn’t surprising given persistent inflation and elevated interest rates continue to drag on the economy. Historically, gold tends to perform well during periods of economic uncertainty, as investors look for a hedge against inflation and a stabilizing asset to add to their portfolios. In April 2021, annual CPI inflation hit 4.2%, its first annualized gain above 4% since 2008.

Oil prices are also on the rise, posing a threat to the US economy, according to Mark Zandi, chief economist at Moody’s. Nations not allied with the US may accumulate gold to “mix away from dollars” to reduce vulnerability to sanctions, according to a March JP Morgan research note. Gold price picked up fresh bids and jumped to nearly a two-week high of $2,721 in the early dealing. The US Dollar saw a bearish opening gap in tandem with the US Treasury bond yields. Asian traders hit their desks and reacted to the weekend news that US President-elect Donald Trump named billionaire Scott Bessent as his Treasury Secretary. “U.S.-China relations have been strained for quite a while, and it’s been even worse over the past year.

It’s a reasonable thing for them to reduce their reliance on the dollar,” Campbell Harvey, a professor at Duke’s Fuqua School of Business who studies commodity prices, told ABC News. Tim Maxwell is a forex compounding calculator freelance writer who covers investing, real estate, banking, credit education and other personal finance topics. She’s been a journalist for more than 10 years covering business, personal finance, and investing news. “The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and the company’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch,” the April 9 investment note said. The US Dollar (USD) tracked the sell-off in the US Treasury bond yields, currently trading 0.65% lower on the day against its major currency rivals.

But average gold prices were flat to down slightly in 2022, providing no hedge against inflation. Gold is traditionally seen as a safe-haven asset when you expect How to buy hex coin stock market turbulence or as a hedge against inflation. Many Americans worry about how the outcome of next week’s presidential election could affect the equities markets, the economy, and their personal finances.