Will gold's price drop this April?
The price of gold has been on a steady, upward trajectory for more than a year now. Starting priced at $2,063.73 per ounce in January 2024, the price of the precious metal has since surged, breaking yet another new record this week when it surpassed $3,100 per ounce. That's a remarkable 50% rise in value in around 15 months, making gold one of the very smartest ways to invest and protect your money right now. And with inflation still a concern and the need for a portfolio diversifier prevalent, many investors, no matter their age or investor profile, could benefit from adding gold to their mix right now.
Still, while a rising price may be good for investors who got in early with gold, it can be problematic for those who haven't yet invested. For these investors, the potential for gold's price to drop soon could be the difference between getting started with the metal now versus exploring alternative assets. But will gold's price drop this April? Below, we'll break down what to consider.
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Will gold's price drop this April?
While predicting the future price of any asset is impossible to do with precision, if recent performance is a reliable indicator and current economic conditions continue unchanged, it's unlikely that gold's price will drop this April. Nor is it likely to decline in May or June either. Here's why:
Gold prices tend to only rise: Sure, the price of gold dipped a bit last November after breaking the $2,700 per ounce record in October. But they rebounded pretty quickly and have already broken new price records this year, one of the most significant being the milestone $3,000 mark in mid-March. So while gold's price can drop in relatively small amounts periodically, overall and historically, it only tends to rise. Waiting for a big drop in value to buy in, then, doesn't make sense, and it could theoretically cause you to get priced out altogether.
Invest in gold now before the price becomes out of reach.
Economic conditions point to additional rises: Gold tends to rise in price when inflation is a concern, as we've seen in much of the last three years. And while inflation dipped slightly in the most recent reading, it's still almost a full percentage point above the Federal Reserve's 2% target. And if inflation rises amid recent economic developments, the price of gold could easily respond by ticking up yet again. So keep an eye out for the next inflation reading for March, to be released on April 10. Gold prices could change again around then, likely by rising once more.
A need for portfolio diversification will increase: Amid stock market uncertainty and other current economic concerns, many investors will look for ways to keep their portfolios afloat by diversifying with key assets. Gold and other precious metals often serve this purpose well, thanks to a steady value, even when assets like stocks and bonds are rattled. This relationship is unlikely to change anytime soon and if a need for portfolio diversifiers becomes more pronounced, demand for gold and, thus, the price of the precious metal, is likely to increase in response, not decline.
The bottom line
The likelihood of a drop in gold's price this April is low and, in fact, the precious metal is likely to continue to break numerous price records this spring, possibly even before May 1. So if you've been waiting to invest in the metal, it makes sense to do so now, before the rise becomes fully out of reach. And remember that you don't necessarily need to pay today's top price to get invested, as options like fractional gold, gold ETFs and dollar-cost averaging all allow you to secure the protections gold offers without having to overleverage yourself to get it.
