World gold prices have been increasing steadily for more than a year. From a starting price of 2,063.73 USD/ounce in January 2024, this precious metal has skyrocketed and broken a new record when it surpassed 3,100 USD/ounce last week.
This is an incredible increase - nearly 50% after only 15 months - making gold one of the most attractive investment and protection channels today.
However, the rising gold price raises a big question for those who have not invested: Can gold prices fall in the near future? For those who are skeptical, gold's decline - if it does - could be a factor that determines whether to invest or switch to another channel.
So, will gold prices fall in April? CBS News believes that while accurately predicting the price of any asset in the future is impossible, based on recent trends and the current economic conditions not changing much, the possibility of gold prices falling in April is very low - even in May and June, there is a hard time to have a strong correction.
Gold prices tend to only increase
Although gold prices have adjusted slightly - for example, the decline in November last year after reaching the mark of 2,700 USD/ounce in October - this decrease is only temporary.
Prices have quickly recovered and continued to set new peaks this year, notably surpassing the $3,000 mark in mid-March. Therefore, although prices may fluctuate slightly in the short term, overall, gold still tends to increase over time. Waiting for a deep decline to "catch the bottom" can cause investors to miss opportunities or be pushed out of the market as prices continue to rise.
Economic conditions support the upward trend of gold prices
Gold prices often increase in an environment of high inflation - something that has happened for the past 3 years. Although inflation has just shown signs of a slight decrease in the latest figures, it is still nearly 1% above the 2% target of the US Federal Reserve (Fed).
If inflation continues to increase again due to new economic factors, gold prices may continue to rise. The March inflation index is expected to be released on April 10 - the time when gold prices may have new fluctuations, most likely up.
The need to diversify investment portfolios is increasing
While the stock market and the world economy are still unstable, many investors are looking to gold as a hedge against risks.
Gold often holds prices well - even rising - while other assets such as stocks or bonds fluctuate strongly.
This relationship shows no signs of changing, and if defense demand continues to increase, gold prices will be strongly supported by market demand.
CBS News concluded that the possibility of gold prices falling in April was very low. In fact, the precious metal could continue to set many new records this spring - even before May 1.
