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CBS News
2 days ago
- Business
- CBS News
How to maximize your gold investment this June, according to experts
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are strategic ways in which investors can maximize their gold investment this month. Getty Images We saw the price of gold climb steadily in early 2025, rising from around $2,600 at the beginning of the year to above $3,400 per ounce in April. But the precious metal has since pulled back to around $3,300 per ounce — pressured by shifting inflation expectations and reduced demand for safe-haven assets. These fluctuations are a wake-up call for investors. With monetary policy uncertainty and geopolitical tensions creating ongoing volatility, the traditional playbook for gold investing may need updating. Below, investing professionals share tips to help you maximize your gold investment this month — whether you're holding physical gold, exchange-traded funds (ETFs), mining stocks or other gold assets. Invest in gold here before the price rises again. How to maximize your gold investment this June, according to experts Henry Yoshida, CEO and co-founder of Rocket Dollar, a fintech platform helping investors tap alternative assets as a vehicle for retirement, sees the $3,300 to $3,400 price range as critical when evaluating gold's next move. "[This] represents a solid holding area where gold can develop a base for continued upward movement," he says. A dip to $3,300 that then holds steady could signal a buying opportunity for long-term holders. In contrast, a break above $3,400 might call for waiting until the next pullback. With this in mind, experts recommend the following strategies to make the most of your gold investment this June: Monitor the Federal Reserve's June 18 meeting "I'm watching the June Fed meeting very closely," says Brandon Aversano, CEO of The Alloy Market. "If rates are cut sooner than expected, we could see a jump in gold prices. I would also look at the mid-June Consumer Price Index (CPI) and Producer Price Index (PPI) releases. Any increase in inflation would likely trigger an uptick in gold prices." What the Fed says can be as important as what they actually do with rates. "Pay close attention to Federal Reserve communications regarding the pace of interest rate cuts," Yoshida emphasizes. "If the Fed signals they may lower rates more slowly than Wall Street currently expects, this typically serves as a bullish indicator for continued gold price appreciation." Learn more about gold's current price trajectory here. Think long-term (and invest accordingly) Gold's recent volatility might tempt you to chase short-term gains. But experts warn against this approach. "Although gold has had some incredible rallies in the past, it's not generally profitable for the average person to invest in gold in short timeframes like one month," cautions Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX). The key is managing expectations while staying focused on gold's role in your portfolio. While many analysts expect gold to reach $3,700 this year, the timing and catalysts for such moves remain uncertain. This reinforces why patient, long-term holders usually do better than those trying to time the market's ups and downs. Buy gold jewelry "Right now, peer-to-peer sellers are highly motivated to move their gold jewelry for liquidity," highlights Aversano. "You can often find gold pieces that are worth slightly less than their melt value on eBay or other platforms. If you can find these pieces, [they're] great to [buy] and hold onto for future liquidation when gold has appreciated." Aversano suggests checking estate sales, jewelry stores, antique stores and online peer-to-peer networks. This strategy requires more effort than buying traditional gold products. However, it can offer better value if you understand gold content and current market prices. Consider dollar cost averaging and rebalancing Some gold holders may benefit from a dollar cost averaging approach this month. "Instead of making one large purchase, spread smaller purchases over time," advises Monetary Metals's head of content, Ben Nadelstein. "This can reduce exposure to short-term price swings while maintaining a consistent long gold strategy." Since gold serves as a long-term portfolio asset, Nadelstein notes that temporary price pullbacks often don't require immediate attention. "If gold is still serving its intended purpose [in your portfolio], minor fluctuations are usually not a concern," he explains. "[But] if [you] feel overweight or underweight, [you] might choose to reduce or add exposure gradually rather than reacting to short-term movements." The bottom line This June presents unique challenges and opportunities for gold investing, with Fed actions and market volatility creating risks and rewards. The tips outlined above can help you make informed decisions. But before adjusting your June investment strategies, it may help to discuss your options with a financial advisor well-versed in precious metals investing. They can help you decide which approaches align with your financial goals.
CBS News
07-05-2025
- Business
- CBS News
What needs to happen for gold prices to fall again? Experts weigh in
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are a few different scenarios that could occur and drive down the price of gold, experts say. Getty Images/iStockphoto Gold has experienced an extraordinary uptick in price recently, and has seen impressive movement over the last few months in particular. In April, we saw the price of gold hit an extraordinary $3,400 per ounce. This milestone broke previous records and reflects growing investor confidence in precious metals amid inflation concerns and heightened global tensions. But while gold reaching new highs is great for current investors who are seeing their gold investments increase in value quickly, it can be cost-prohibitive for new investors who want to buy in at the right time (and at the right price). So what needs to happen for gold prices to fall again and make the price of gold more affordable for those who want to invest now? Here's what experts had to say on the subject. Learn more about the benefits of gold investing today. What needs to happen for gold prices to fall again? Experts weigh in Here are six scenarios gold investing professionals believe could trigger a gold price drop: Investors taking profits "Given the rapid rise of gold prices in 2025, continuing on price gains in 2024, the most likely scenario for gold prices to fall could be good old-fashioned profit-taking," explains Henry Yoshida, CEO and co-founder of Rocket Dollar, a fintech platform helping investors tap alternative assets as a vehicle for retirement. When investors see their gold holdings rise dramatically in value, they may sell to lock in profits and redeploy funds into other assets. This creates more supply in the market as investors move their money to investments such as real estate, stocks and bonds. Find out how to add gold to your investment portfolio now. Sharp strengthening of the U.S. dollar "If the dollar strengthens aggressively against other currencies, gold usually takes a hit because it becomes more expensive for foreign buyers," says Jack Hanney, CEO and senior partner at Patriot Gold Group. A quick 5% to 10% jump on the Dollar Index would put serious pressure on gold, according to Hanney. This could happen if economic conditions abroad deteriorate faster than in the United States, or if worried investors flock to U.S. Treasuries for safety during market volatility. Economic recovery reducing safe-haven demand Gold prices could fall if the Federal Reserve cuts interest rates to help accelerate economic recovery. "With lower interest rates comes improved labor markets, earnings and higher GDP," says Brandon Aversano, CEO of The Alloy Market. This economic strengthening can change investor behavior. As employment improves and corporate profits rise, investors often shift focus from defensive assets (such as gold) to growth investments. Cooling political and economic tensions "Geopolitical risk is a big part of gold's current strength," says Hanney. "If there were breakthrough peace deals, stabilization and cooling tensions, it would reduce the fear premium baked into gold." Yoshida suggests a reduction in geopolitical tensions could bring gold back to around $3,000 per ounce. However, it's worth noting that while "headlines usually cause a dip, the structural problems with debt and currencies don't go away," Hanney says. "So, any cooling off would probably be temporary unless it's paired with real economic healing." Breakout equity market rally "If stocks suddenly start roaring back with strong earnings, investors [might] shift toward risk assets and lighten up on gold," says Hanney. This scenario represents a classic example of asset rotation driven by changing market sentiment. During periods of strong economic confidence, investors naturally seek higher returns than what precious metals can provide. While gold offers stability, inflation protection and portfolio diversification, a thriving stock market's potential returns often draw capital away from it. Deflationary pressure and central bank shifts "If, instead of inflation, we get a severe deflationary collapse (such as a deep recession or credit crunch), there could be short-term selling pressure in gold as people liquidate assets to raise cash," warns Hanney. He notes that in the long run, however, "gold wins either way." A major shift in inflation trends could also affect institutional demand. "Central banks have been buying gold at a record pace as a hedge against inflation," says Aversano. "As inflation begins to cool, [their gold purchases] may begin to taper off." This reduction in institutional buying could drive prices lower. The bottom line While several scenarios could cause gold prices to decline, experts caution against waiting for the perfect entry point. "Investing in gold should always be a long-term play as timing the market is difficult and returns are almost always better the longer you allow an asset to appreciate," Aversano advises. Hanney views gold as financial protection. "Gold is insurance against rising debt, currency erosion and growing global fractures," he says. Like home insurance, the protection gold offers is most valuable when secured before you need it — not after market turmoil has already begun.
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.
