This is the gold price forecast for October 2024

Gold continues to attract investors in today’s unpredictable economy. This year, the precious metal has made a comeback broken price records as people look for ways to protect their wealth. With inflation concerns and global uncertainty on the rise, gold’s role as a safe haven investment is now very strong.

In September, the the price of gold hit apart all time high. Now, as we head into October, many are asking: Will this upward trend continue? Or are we due for a price drop?

To get an idea from what might happen nextwe spoke to three top financial advisors. Predictions for October gold prices can help you make smarter investment choices, whether you’re an experienced buyer or beginner to the gold market.

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This is the gold price forecast for October 2024

As we move into October, gold looks poised for further gains, with forecasts ranging from $2,600 to $2,800 per ounce. This optimistic view was built upon climb impressive gold which since the beginning of the year.

Henry Yoshida, certified financial planner and founder of Rocket Dollar predicts that “the price of gold will continue to rise.” He pointed to potential central bank purchases and expected the Fed’s interest rate cuts to be the main driver. The bullish forecast of $2,800 per ounce reflects strong confidence in gold’s upward momentum.

While Yoshida looks at monetary policy, Will Rhind, CEO of investment firm GraniteShares, finds inspiration in historical trends. “The price of gold has appreciated an average of 8.5% in the six months after the rate cut of 50 basis points,” he said, referring to data from 2020. This pattern led to a forecast of $ 2,700 at the end of the month.

Jerry Prior, COO and senior portfolio manager at Lucas Mountain Management, has a more measured view. He sees gold holding steady between $2,600 and $2,700 in October. “We see no reason to sell gold here,” he stressed, pointing to the path of the Fed’s support rate as the main reason.

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Key factors driving gold prices

Although gold price predictions vary, our experts agree on one thing: Gold’s upward trend will continue. But what led to this golden opportunity? Here are three factors:

• Interest rate shift: Yoshida highlighted that when interest rates fall, various markets seem to rise. He expects gold to follow this trend, benefiting from the changing rate environment.
• Global uncertainty: Geopolitical tensions are currently high with the US election and ongoing conflicts abroad. Rhind notes that “increasing geopolitical tensions in the Middle East and Ukraine” are driving gold demand.
• Dollar dynamics: “As the Fed has moved to cut rates, the dollar has weakened and gold has been higher,” Prior said. The inverse relationship between gold and the greenback often drives the price of gold when the dollar falls.

What the October gold outlook means for investors

October’s gold outlook presents opportunities and challenges for investors.

We will see more economic data such as what the job market looks like. “If the job numbers continue to decline, you could see that reflected in higher gold prices as expectations for the Fed to cut rates more aggressively could rise,” said Rhind.

In addition to the labor market, Rhind advises to keep an eye on the performance of the US dollar, as this can also affect the price of gold. “If interest rates continue to fall, that will certainly benefit the price of gold,” he said.

If you’re considering a gold investment, Yoshida offers some strategic advice. “Try buying physical gold in a tax-deferred vehicle such as an IRA,” he says.

To IRA gold route means you don’t have to worry about capital gains tax directly. These tax breaks can help your investment grow over time, whether you’re investing in gold or other assets. In the long run, this approach can yield a better return on investment.

Yoshida also recommends that long gold investors maintain their positions, while those new to gold or underinvested should think about increasing their allocation.

Remember that gold can act as a buffer against stock market volatility. “If stocks go through more volatility, it could benefit gold because of the uncertainty,” Rhind said. These are the highlights gold’s role in diversification and stabilization of investment portfolios, especially in turbulent economic times.

Bottom line

Gold’s potential for growth in October looks promising, but smart investing is ahead of short-term forecasts. “Gold should be part of every diversified portfolio for risk management purposes rather than speculation,” says Rhind. Think of gold as an insurance policy for your investment – it’s better to have it before you need it.

If you want add gold to your portfolio this fall, start by talking to some financial advisers. They can help you explore different options, including physical gold and ETFsand discuss strategies such as dollar cost averaging.