Will gold’s price keep rising this spring? Here’s what experts think.
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While gold has long been sought after by investors, the precious metal has recently become a beacon of stability in an increasingly volatile economic landscape. With global uncertainties continuing to mount and central banks across the world increasing their gold reserves, the precious metal’s price has soared to unprecedented heights over the last several months and is now inching toward the $3,000 per ounce mark. This historic rally has caught the attention of investors who are seeking refuge from today’s economic hurdles.
The remarkable surge in gold prices comes amid persistent inflationary pressures affecting everyday consumer goods. While inflation has cooled dramatically from recent highs, the inflation rate has been ticking back up over the last four months, pushing up prices on everything from gas to groceries. This, in turn, is creating an economic environment where investors increasingly look to gold as a safe haven and a hedge against inflation.Ā
However, the price of gold is not immune to volatility, especially in the short term. So while the price of gold has been rising, will it continue to do so this spring?Ā
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Will gold’s price keep rising this spring? Here’s what experts think.
Historically, gold has held its value or appreciated during economic strain or high inflation ā so given today’s economic hurdles, experts largely agree that the price of gold could continue on its upward trajectory this spring. After all, in addition to the inflationary issues we’re experiencing, other economic hurdles are looming, like policy changes by the new administration, that could cause further economic uncertainty.Ā
“We don’t think that the rally is over yet,” Lina Thomas, a commodities strategist at Goldman Sachs Research, noted during a recent discussion regarding gold prices. “We have a target of $3,500 by the end of 2025. The reason for that is twofold: One, structurally higher central bank demands, and two, some boost to ETF flows because the Fed is expected to cut twice this year. That being said, if safe-haven demand remains high or picks up again ā¦ we can easily go to $3,300 by the end of 2025.”
The gold market can also experience short-term price fluctuations, though. So, while it’s likely that gold prices could continue to climb this spring, there’s certainly no guarantee, especially if there are shifts in the wider rate environment or other economic areas.
“Gold can be so sensitive to rate cut expectations that just an announcement the board members are considering raising rates can negatively impact spot prices,” Brett Elliot, director of marketing at American Precious Metals Exchange (APMEX), says. “However, it’s clear from recent events that geopolitics and the threat of tariffs are a primary driver of gold spot prices, especially against the backdrop of continued central bank gold hoarding.”
That said, the Federal Reserve’s upcoming interest rate decision, slated for mid-March, is unlikely to significantly alter gold’s trajectory. Experts largely agree that the Fed will keep its benchmark rate paused for now to continue to fight against rising inflation, which just ticked back up again last month. Should the Fed continue the rate pause and avoid hinting about future rate decreases, gold prices are likely to rise as more investors buy in to protect their wealth and fight against inflationary losses.Ā
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The bottom line
Gold prices have recently reached historic highs and appear poised for continued growth, experts say. While past performance doesn’t guarantee future results, the fundamental factors driving gold’s current rally suggest the precious metal may continue to shine bright in investors’ portfolios. So, if you’ve been waiting on the sidelines to buy in, this could be a good time to make your move. After all, gold can offer a number of unique benefits to your portfolio, so adding it now could pay off both in terms of price growth and other protections now and in the future.
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