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By Aly Yale
Edited By Angelica Leicht
/ CBS News
Investing in gold is often seen as a smart way to protect against inflation and diversify your portfolio — and these are just two of the reasons the precious metal has seen renewed interest over the last year. Demand for the product has surged so much, in fact, that gold prices are currently sitting at all-time highs (as of April 1, 2024).
Will those gold prices continue rising this spring, though? According to experts, they could. Here's what you can expect for gold prices moving forward over the next few months.
Find out how gold investing could benefit you here.
Gold price forecast for spring 2024: Here's what experts predict
Experts say the following scenarios are likely to occur in terms of gold prices this spring:
The price of gold will stay steady
Some experts say gold prices will hold steady — at least in the near term. "I believe that over the next couple of months, gold prices will be flat," says Steve Azoury, owner of Azoury Financial.
This comes down to the Federal Reserve, which will likely keep interest rates paused at a 23-year high for the next few months. While the Fed's rates don't directly impact gold prices, they do tend to move inversely of each other, with demand for gold rising as interest rates fall.
That said, the Fed had indicated that rate cuts are on the not-so-distant horizon, so things will likely change further down the road, experts say.
"Gold will continue to stay very high over the next year and possibly trade higher during the next couple of years," says Alex Ebkarian, co-founder of Allegiance Gold.
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The price of gold will rise
As Ebkarian indicated, the majority of experts predict gold prices will rise for the foreseeable future.
"We have no idea where gold prices will go in the next couple of months but remain confident they go higher this year," says Peter Boockvar, chief investment officer at Bleakley Financial Group in Fairfield, N.J. "Now that the Fed is likely going to be cutting interest rates, that should be a tailwind for gold as will a weaker dollar if that comes to pass."
The Fed's expected rate cuts, coupled with continued geopolitical uncertainty, which typically sends investors to safe-haven assets like gold, should keep demand for gold high.
According to a report from JPMorgan, gold prices should rise steadily quarter-over-quarter until peaking in the back half of 2025. Currently, gold is trading above $2,250 per ounce, already surpassing JPMorgan's predictions for the year.
"Many said the price of gold would fizzle once it hit $2,000 per ounce," says Nick Fulton, managing partner at USA Pawn and chairman of the Mississippi Pawnbrokers Association. "Clearly, they were wrong. In the last six months, gold is up almost 17% in value."
The bottom line
While none of these experts expect gold prices to fall anytime soon, and while gold is likely a smart investment right now, you should still be wary of going all-in on gold. Financial pros generally recommend dedicating no more than 10% of your portfolio to gold. This can help diversify your portfolio and protect you from downturns in other assets you're invested in. "The old saying of 'Don't put all your eggs in one basket' rings true today," Fulton says.
