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CBS News
28-04-2025
- Business
- CBS News
Will gold hit $4,000 per ounce in 2025? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The price of gold could be heading toward the $4,000 per ounce milestone. Getty Images It seems like the price of gold just keeps hitting record after record. In March, gold prices surpassed the $3,000-per-ounce mark for the first time ever. Now, they're sitting around $3,300 per ounce — and climbing. The reasons are many, but economic uncertainty, geopolitical instability, and unpredictable market performance are all part of it, driving consumers to safe-haven assets that protect their wealth. And gold? It's the No. 1 safe haven in many investors' eyes. The surge in the price has been supported by a number of factors, says Brett Elliott, director of content at precious metals marketplace APMEX, including "bank failures, rate cuts from the Federal Reserve, and now the current trade war and tariff announcements." And while there is likely a ceiling for gold prices at some point in the future, many experts are predicting further growth in the near term. But just how high could they climb? Could gold prices reach the $4,000 price point? We asked some experts for their predictions. Start protecting your portfolio against market uncertainty with gold now. Will gold hit $4,000 per ounce in 2025? Will the price of gold hit or potentially surpass $4,000 per ounce this year? Here's what to expect, according to the experts we spoke to: Gold prices will likely keep rising Experts don't really see gold prices dropping anytime soon, at least unless some sort of economic stability is achieved, giving consumers more confidence in investing their money elsewhere. "Investors are reacting to the flood of contradictory signals coming out of the White House on tariffs, debt, and global trade," says Ben Nadelstein, head of content at Monetary Metals. "That uncertainty is shaking confidence in stocks and bonds and sending capital into gold since it's an asset that doesn't rely on political stability." In short, he says, "there's a growing appetite for stable, yield-generating, non-sovereign assets." One major concern is proposed international tariffs, and though those have been paused temporarily, they'll likely remain a big influencer in gold prices until some more clarity on their impact emerges. "Tariff uncertainty will remain until the 90-day pause ends in July at the very least, and that uncertainty is helping fuel gold prices," Elliott says. "We're very close now to breaching $3,500 for the first time, and with two very recent moves of 3% in a single day, confidence is increasing that we will see gold break another record in the near future." Explore your top gold investing options here. Hitting the $4,000 mark may be hard It's certainly possible that gold prices hit $4,000 per ounce at some point, though it might take something big to make it happen — like the Federal Reserve dropping interest rates to zero, as it did during the Covid era. This might occur if inflation rises or a recession hits, and the Fed needs to stimulate consumer spending. "Gold prices can absolutely reach $4,000 per ounce if economic uncertainty and large market sell-offs continue," Nadelstein says. "Interest rates falling back towards zero could also propel gold prices past the $4,000 per ounce mark as investors move out of dollars and into something that can still deliver a real yield." Still, it'd be a big jump to make, Elliot says. "We would need to rally an additional 17% from today's already historic price," Elliott says. "That's no small feat, and at some point, the current rally will need to end. Gold never goes up in a straight line, so we need to expect some pullbacks along the way." And while some might point to the steep jump in gold prices seen in April 2025 as an indicator that the $4,000 mark is in sight, it's important to remember what drove that increase — namely, a big dip in the stock market. That dip pushed a large swath of people toward gold — consumers and market participants who aren't usually on the market for the precious metal under normal circumstances. "As gold prices soared to all-time record highs recently, there was buying from a plethora of different participants," says James Cordier, CEO and head trader at Alternative Options. "The glaring difference in this most recent rally in prices was the breadth of the market." The bottom line Whether or not gold prices reach $4,000 this year, it still might be the right time to buy in. For one, experts aren't predicting drops anytime soon, so it could be a smart way to invest your money and, more importantly protect yourself against potentially rising inflation. It can also be a diversifier, bringing some much-needed stability to your portfolio in an unpredictable time. Whatever you do, just go in with a long-term mindset, experts say, and gold could be the right move for your money. "Gold will never drop to zero dollars, but it might not give you the returns you were hoping for right away either," Elliott says. "Go in with a plan and a goal and be prepared to hold for a long time."
CBS News
19-02-2025
- Business
- CBS News
The relationship between gold prices and the dollar: Everything to know
Gold's price surge past $2,700 per ounce in October 2024 marked the beginning of a sustained rally. The momentum has only strengthened in 2025, with investors continuing to push the precious metal to new price highs. Several forces power this remarkable rise, including inflation concerns and central bank purchases. But what's particularly interesting is gold's relationship with the U.S. dollar. While gold prices usually fall when the dollar strengthens, recent months have shown this pattern deviating — catching market watchers by surprise. Below, we'll break down what investors should know now. Wanted to invest in gold before the price rises again? Get started here now. The relationship between gold prices and the dollar Below, experts break down why the price of gold keeps climbing and the precious metal's complex relationship with the dollar. Recent changes in market patterns, along with key economic indicators, offer clues about where gold prices might be heading. Why gold prices have been climbing "Gold can be a valuable asset in a portfolio precisely because it has [a] low correlation with other asset classes," emphasizes Ben Nadelstein, head of content at Monetary Metals. This independence from traditional market patterns has caught investors' attention, especially as markets face increasing uncertainty. The appeal of gold's unique behavior has helped drive its impressive price climb, but it's not the only factor at work. Industry professionals highlight other forces that have pushed gold prices higher: Central bank buying: Asian central banks, especially China and India, have dramatically increased their gold reserves. Investor sentiment: More investors are adding gold to diversify their portfolios amid inflation expectations and financial stability concerns. De-dollarization: The BRICS+ nations are reducing their dependence on the U.S. dollar. Market evolution: Gold prices now respond to a broader range of global economic factors. Invest in gold online today. How gold prices typically move with the dollar Henry Yoshida, co-founder of Rocket Dollar, highlights that gold prices and the U.S. dollar traditionally move in opposite directions. "A stronger U.S. dollar will suppress the price of gold, while a weaker U.S. dollar will likely drive the price of gold higher through increased demand," he explains. But Michael Petch, co-founder and president of Argo Digital Gold, points out that this relationship isn't absolute. "[When there's] financial instability, gold and the dollar may [go up as people] seek safe-haven assets," he says. The complex interplay between gold and the dollar "Large-scale government accumulation has added a demand-side force that can push [gold] prices higher, even in a strong-dollar environment," Petch highlights. Beyond this influence, Kevin Bryan, director of customer experience at The Alloy Market, points to several often-overlooked factors that create a more nuanced dynamic: Supply limits: Mining strikes and environmental regulations can restrict gold production. As a result, gold prices may go up even when the dollar is strong. Geopolitical risks: Rising global tensions and trade disputes create uncertainty. Naturally, this drives people to invest in safe-haven assets such as gold — sometimes even alongside a strong dollar. Inflation concerns: Investors may turn to precious metals including gold and silver to hedge against inflation, regardless of current dollar strength. Digital gold investment vehicles: Investment products such as exchange-traded funds (ETFs) have made gold more accessible but also more sensitive to market sentiment. This creates new patterns in the gold-dollar relationship. Foreign policy changes: More countries are reducing dollar holdings in favor of gold, creating steady demand. Gold's price trajectory and key indicators to watch The gold rush could continue and we may see new all-time highs in 2025, according to Yoshida. He sees a strong outlook, particularly if prices maintain support above $2,700. Several market indicators can help you track gold's price trajectory. Petch suggests looking beyond the usual metrics such as inflation rates and the Federal Reserve policy. Here are the signals experts recommend keeping a close eye on: Central bank buying: Continued purchases by major national banks signal strong long-term demand. Real yields: Gold tends to shine when inflation-adjusted interest rates decline. U.S. fiscal policy and Treasury market: Growing concerns about U.S. debt levels could drive more investors to gold. Supply and demand: Gold lease rates and mining production levels help gauge market strength. Geopolitical tensions: Trade wars, tariffs and global instability often increase gold prices. The bottom line Understanding gold's relationship with the U.S. dollar can help you make smarter investment decisions. Today's gold market offers plenty of ways to invest. For example, you might choose gold bars and coins to hold tangible assets long-term or buy gold ETFs if you prefer easier buying and selling. Opening a gold IRA could be smart if you're thinking about retirement planning. But before jumping into gold investing, consult your financial advisor about which approach best fits your goals and portfolio strategy. They can help you weigh your options and create a sensible personalized plan.
