In the U.S. trading on Monday, spot gold fell below $2,630 an ounce, down more than 1% on the day.
Still, gold continues to attract investors in today’s unpredictable economic environment. Gold’s role as a safe-haven investment is particularly strong as inflation concerns and global uncertainty grow.
Gold appears poised for further gains heading into October, with forecasts ranging from $2,600 to $2,800 an ounce, three top financial advisors noted. This optimistic outlook builds on gold’s significant climb since the start of the year.
Henry Yoshida, a certified financial planner and co-founder of Rocket Dollar, predicted that "gold prices are likely to continue to rise steadily." He pointed to potential central bank purchases and expected Federal Reserve rate cuts as key drivers. His bullish forecast of $2,800 an ounce reflects strong confidence in gold's upward momentum.
While Yoshida focuses on monetary policy, Will Rhind, CEO of investment firm GraniteShares, finds inspiration in historical trends. "Gold prices have risen 8.5% on average in the six months following a 50 basis point rate cut," he said, noting that this is data from 2020. This pattern drives his forecast that gold will reach $2,700 an ounce by the end of the month.
Jerry Prior, COO and senior portfolio manager at Mount Lucas Management, holds a more cautious view. He believes that the price of gold will remain stable between $2,600 and $2,700 per ounce in October. "There is no reason for us to sell gold at this level," he asserted, pointing to the Federal Reserve's potential path of rate cuts as one of the main reasons.
The gold outlook for October offers both opportunities and challenges for investors.
We will see more economic data such as the job market soon. Rhind said: "If the U.S. employment data continues to deteriorate, you may see it reflected in higher gold prices because market expectations for more aggressive rate cuts from the Federal Reserve may increase."
In addition to the job market, Rhind also recommends paying attention to the performance of the US dollar, as this can also affect gold prices.
Yoshida also recommended that long-term investors holding gold positions maintain their positions, while investors who are new to the gold market or underinvested should consider increasing their allocations.
Gold can act as a buffer against stock market volatility. “If the stock market experiences another bout of volatility, this could benefit gold due to the uncertainty,” Rhind noted, highlighting the role of gold in diversifying and stabilizing a portfolio, especially during turbulent economic times.
Article forwarded from: Jinshi Data
