Gold prices just hit a fresh high: 3 moves to make now

Gold prices have officially surged to a new all-time high, with today's precious metal price sitting at $3,123.44 per ounce. This milestone comes just weeks after gold shattered the long-anticipated $3,000-per-ounce barrier, underscoring its impressive upward trajectory. And, investors and market analysts alike are closely watching this rally, as gold continues to solidify its reputation as a safe-haven asset amid economic uncertainty.

This latest gold price surge isn't just a new milestone, though. It also represents a dramatic increase of nearly $1,000 per ounce since mid-March 2024, when gold was valued at $2,175.55 per ounce. Over the past year, a combination of factors — including persistent inflation concerns, geopolitical tensions and central bank policies — has helped drive demand for gold, pushing its price higher in tandem. 

For those who have already invested in the precious metal, this price increase is almost certainly a welcome development — and it's likely to draw in even more investors to the gold market. But with gold at record levels, it's important to carefully evaluate your next steps. Here are a few moves you should make with gold at today's fresh new high.

Make sure your portfolio is protected with the right gold investment today. 

What today's high gold price means for investors

It could pay off to make these moves make right now considering that gold prices are sitting at a new high:

Determine whether your investment portfolio is fully protected

Many people's investment portfolios are feeling the impact of today's unstable economic environment right now. One issue is that while inflation fell to 2.8% in February, it remains above the Federal Reserve's target rate of 2%. The Fed also continued its rate pause this March, and the stock market has endured some volatility recently, too. That, in turn, has many investors looking for stability amid the turmoil.

As a result, it's important to review your portfolio to determine whether it's fully protected against these or other issues. Pay special attention to whether you've incorporated the right strategy (and the right assets) to hedge against future inflation issues or the negative effects that continuing economic uncertainty may have on your portfolio. If you find you need more inflation-hedging assets or protection against economic turmoil, it may be time to diversify with gold.

Find out more about how gold can protect your portfolio.

Consider adding gold to the mix

Gold tends to increase in value when other assets struggle during market volatility because it's a popular safe haven for investors who want stability. Investors and banks also tend to turn to gold when inflation rises, helping to drive up gold's price thanks to the uptick in demand. So, if the inflation report that's slated to be released in April indicates that inflation rose in March, adding gold to your portfolio now, before the report is released, can help you avoid any demand-driven price spikes that occur.

You have multiple options for buying gold, though. While gold bars and coins are popular, there are other types of gold investments, such as gold individual retirement accounts (IRAs), gold exchange-traded funds (ETFs) and gold futures, that may also be worth considering. Some gold investment types are riskier than others, though, so it's important to do your homework. 

For example, gold IRAs are a relatively low-risk way to invest in gold. On the other hand, gold futures tend to be riskier, especially for beginner investors who don't have experience with or knowledge of that type of asset. Gold bars are safe overall but come with additional costs for insurance and storage. Whatever investment type you choose, though, remember that experts recommend limiting your exposure to gold to a maximum of 10% of your portfolio. 

Understand gold's pros and cons

Gold comes with pros and cons that all investors should be aware of, especially if they're thinking of buying at today's prices. The big benefit of gold is that it has long been viewed as a reliable way to hedge against inflation and protect your portfolio in times of volatility. It's also a relatively stable investment that isn't linked to stock and bond prices, which means it may increase in value when other assets lose money. And, the current uptick in price means that there may be an opportunity to reap quick returns on an investment that is typically best to hold for the longer term.

However, gold investing also has its drawbacks. Unlike stocks, gold doesn't award dividends. And while gold is known for the stability it offers, it can also experience price volatility, especially over the shorter term, as numerous factors impact its price, such as geopolitical uncertainty, speculative trading and supply and demand. 

The bottom line

Gold's latest high and record-breaking price surge underscores its enduring appeal as a safe-haven asset, but investors should approach with caution. While the metal's price increase presents potential opportunities, it's essential to weigh both its advantages and risks before making any moves. Diversifying with gold can help hedge against inflation and economic uncertainty, but maintaining a balanced portfolio remains key.

As gold continues to make headlines, staying informed and strategic is crucial. Whether you're considering adding gold to your investments or evaluating your current holdings, taking a thoughtful approach will help you maximize benefits while mitigating risks. With careful planning, gold can serve as a valuable tool in navigating today's unpredictable financial landscape.