It may feel like ancient history right now, but it wasn’t that long ago that the price of gold was just around $2,000. In early January 2024, for example, gold was priced at $2,063.73 per ounce, making it a relatively affordable way to protect your portfolio and diversify your assets. But that price has changed dramatically since that point, with the latest in a series of price records surpassed this April when the cost of the metal surpassed the $3,400 per ounce mark. Now a bit under that milestone at $3,315.69, the precious metal is up by more than $1,300 per ounce in under 18 months. Or, put another way, the price of gold has surged by more than 60% since the start of 2024.
And while this could be a positive development for both current investors and those now considering the yellow metal, the inevitable question surrounding future price movements is now pronounced, particularly considering the wider economic developments that have taken place this April. Specifically, will gold’s price rise continue into this May? Or will the market start to reverse course? That’s what we’ll analyze below.
As long as the conditions that have steadily driven gold’s price to rise over the last 18 months, approximately, remain significant in May, then, yes, gold’s price is likely to continue to rise in the month, minus the inevitable (and occasional) minor declines the price usually experiences. Here are three items that will likely keep the price elevated in May:
Domestic economic concerns: Stock market volatility is a great indicator of where gold prices are heading. If this uncertainty continues in May and stocks and bonds continue to be impacted in a negative way, then more investors will likely turn to gold for the safe-haven protection it offers. Accordingly, the price of the metal will increase with this increased demand, potentially pushing the price of the metal comfortably past the $3,500 milestone.
Invest in gold before the price rises again now.
