Will the price of gold fall in May? What to consider now

Gold has long been considered a smart investment. Thanks to its ability to protect against inflation, diversify portfoliosact like a active refuge and stay stable value, investors have relied on this precious metal for decades. And in today’s unique economic context, in which inflation is sticky and interest rate are high, it has been particularly advantageous to invest in metal. Investing in gold has actually reached a highest in 11 years last September in light of these developments.

THE gold price has also surged in recent months, breaking numerous price records since March 1st, when it was $2,082.55 per ounce. It is now selling for $2,316.06 per ounce, an increase of more than 11% in just 60 days. But with interest rates held steady by the Federal Reserve on May 1 and another inflation report expected to be released on May 15economic factors could affect the price of gold this month.

So, those expecting a decline in the price – and an investment opportunity – should start by considering the likelihood of a decline in the gold price in May.

Find out here how much a large investment in gold could cost you.

Will the price of gold fall in May? What to consider now

Although predicting the price of any investment is highly speculative, some indicators indicate that not only will the price of gold not fall in May, but it may even rise. Here’s what to consider now:

Inflation is stubborn

Inflation has fallen considerably, from a multi-decade high in June 2022, but it’s still not the Federal Reserve’s 2% target. And it started again FEBRUARY and March. If the April inflation report (scheduled for release on May 15) shows a further rise, the price of gold could rise in tandem.

Because gold is well known as a hedge against inflation (when other assets suffer from inflation), more investors could turn to the metal after the latest inflation figures are released, thus causing an increase in prices. So it makes sense to buy now before the cost becomes prohibitive.

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The price has already increased

Of course, the price of gold has seen daily declines. But as previously noted, the price of gold has been on an overall upward trend over the past few months and many experts don’t expect this trend to abate anytime soon.

“Gold will continue to remain very high over the next year and could potentially trade higher over the next couple of years,” Alex Ebkarian, co-founder of Allegiance Gold, an IRA company, said recently gold. CBS News.

Could anything change that would affect this price increase? Of course. But if recent performances are to be believed, this month of May will not be the month where we can expect a drop in the price of the metal.

It’s omnipresent

Gold is arguably more available than ever. You can turn to major gold companies online to invest today or you can visit a local dealer to purchase it in person. Even big retailers like Costco and Walmart sell gold and money now – and the old quickly sold out when they started last summer.

So what does the metal’s omnipresence mean for its price this month? It’s really in the eyes of the investor. The multitude of investment options now means there is demand, which could drive up prices. At the same time, if it is less rare and easier to find, the price could stabilize. This is something to keep in mind as you get involved in the gold investment business from now on.

The essential

No one knows for sure what will happen to the price of gold this month, but if recent performance is any indication, it could continue to rise. With stubborn inflation, a recent upward trend in the price of gold, and the ubiquity of the precious metal right now, there’s a good chance that gold will be worth more on June 1st than it is. It’s the beginning of May. So if you want to get started, consider acting now while the price is more manageable and the ability to make a quick profit is high. But be careful not to overinvest either, because most experts recommend limiting gold to 10% or less of your overall portfolio.