Now it may feel like ancient history, but not long ago Price of gold It's only about $2,000. For example, in early January 2024, gold was priced at $2,063.73 per ounce, making it a relatively affordable way Protect your portfolio and Diversify your assets. But since then, the price has changed dramatically, with the latest costs in a series of price records exceeding the cost of metals exceeding the cost of more than $3,400 per ounce. Now a bit below this milestone at $3,315.69, precious metals are over $1,300 per ounce in 18 months. Or, in other words, the price of gold has risen by more than 60% since the beginning of 2024.

While this is positive for investors who are currently considering gold metals and now investors, the inevitable issues surrounding future price movements have been made clear, especially given the wider economic development that took place in April this year. Specifically, will the price of gold last until May this year? Or will the market start to reverse courses? This is what we will analyze below.

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Will the price increase in gold continue in May this year?

As long as stable conditions Driven gold prices The rise in the last 18 months and remains significant around May, yes, the price of gold may continue to rise during the month, reducing the inevitable (occasionally) secondary secondary times that usually reduce the price experience. Here are three items that may raise prices in May:

Domestic economic issues: Stock market fluctuations It is an excellent indicator for gold prices to move forward. If this uncertainty continues in May, and stocks and bonds continue to be negatively affected, more investors may turn to gold haven It provides protection. Therefore, the price of metal will rise as this demand increases, which may comfortably drive the price of metal. Milestones over $3500.

Invest in gold before prices rise again.

Interest rate policy: It is widely believed that the Fed will lower interest rates later this year. But when the central bank meets again on May 6 and May 7, it seems extremely unlikely. Cutting speed could lead to a drop in gold pricesinterest rates increase or even suspension fees usually keep high prices (as can be seen for most of the past three years). So if the rate changes in the direct range do not change, then gold prices can easily rise again in May (just be aware of the changes here, if the Fed meets again in June, it will issue a reduction rate).

Geopolitical tensions: The rise in gold prices in recent years has been partially supported Geopolitical issues. When these problems are common, investors often turn to the security provided by precious metals, which in turn drives the prices of gold and silver. If these concerns remain high in May and do not seem to be noticeably calm in the last few days of April, the price of gold will remain high and depending on the severity of these concerns, it may even send out new records again. Therefore, be sure to pay attention to any development that may lead to price increases, or, on the contrary, temporarily, causing a price drop, thereby opening up a new, lower entry price.

Bottom line

The inherent risks and difficulties of predicting the future price of any commodity, especially for alternative assets such as gold. That is, if current influencing factors, such as domestic economic issues, interest rate policy and geopolitical tensions will remain at the end of April, or if there is any surge in severity, the price of gold may soon rise. Understanding this potential, it is wise for potential investors to start using precious metals now and then before the next price increase allows the metal to permanently provide protection.