This week, the price of gold has surpassed $4,000 (£2,980) for the first time, fuelled by global political uncertainty driving the precious metal’s rally.
Rick Kanda, Managing Director at The Gold Bullion Company, has explained why the price of gold is surging, what the future landscape looks like and whether now is the time to invest in the precious metal.
“On Wednesday (9th October), the spot price of gold reached $4,031.54, marking its biggest rally since the 1970s. Over the past 12 months, the price of gold has reached record highs as investors seek safe-haven assets during global uncertainty.”
“Factors fueling the surge in the price of gold include political uncertainty in countries like France, where protests have been held across the nation, as well as the government shutdown in the US, which is now entering its second week. Alongside this, since President Trump announced the rollout of tariffs back in April, the price of gold has risen by more than 50%.”
“This week’s gold price news will leave many investors wondering what the future holds for the precious metal, and current forecasts are predicting continued growth. On Monday, Goldman Sachs forecast that the price of gold will rise to $4,900 by the end of 2026, an increase from earlier predictions of $4,300.”
As the price of gold reaches a record high, is now the time to invest?
“Gold investment should not be dependent on whether the market is either surging or falling; you should be more focused on whether your financial situation enables you to do so at that particular time. Gold should always be seen as a long-term investment strategy. The time is right if you have the funds, you are in a financially stable position, and you’re looking for an investment that will store value long-term without thought towards any short-term price fluctuations.”
Rick finishes, “Gold should not be looked at as an asset you react to impulsively. Remember that gold is a long-term investment, not a short-term trade, and market fluctuations are a natural part of the cycle, not a reason to panic. If you have invested in gold for the right reasons, which are long-term financial storage, short-term declines in the market should not hurt your confidence.”
