Gold prices have followed a rollercoaster path over the past year, reaching record highs in early 2026 and then plunging significantly. Despite recovering, they remain below those earlier peaks, presenting investors with opportunities to enter the gold market at more manageable prices.
Experts believe that gold is set for an upward move as the year closes. Brandon Aversano, founder of The Alloy Market, highlights the steady structural drivers underpinning gold prices. He points out that central banks continue to purchase gold at record levels, inflation persists, and geopolitical conflicts remain prevalent.
This uncertain global environment may compel investors to safeguard and diversify their portfolios, often opting for gold. The precious metal is widely regarded as an effective hedge against inflation and a protector of long-term wealth.
Despite the anticipated increase, experts believe the rise won’t be monumental. Brett Elliott of the American Precious Metals Exchange suggests gold prices could exceed $4,500 per ounce, and Hiren Chandaria of Monetary Metals sees the potential for prices between $4,800 and $5,000. However, Elliott notes the unlikely chance of surpassing $5,000, comparing it to catching lightning in a bottle twice.
Volatility is expected as gold prices climb. Chandaria mentions that inflation will play a significant role in determining the fluctuations. High inflation, coupled with potential interest rate hikes by the Federal Reserve, could impact gold prices negatively. Inflation recently fell to 3.4%, but remains above the Fed’s target of 2%.
Fed Chairman Kevin Warsh has yet to confirm any rate hikes, but market predictions indicate a 60% chance of an increase. Elliott speculates that the Fed may change its inflation measure to avoid raising rates, instead declaring victory through this adjustment.
Overall, while fluctuations may occur, gold’s trajectory seems promising for long-term investors. Taking advantage of current prices may be beneficial before they rise further. Thomas Winmill from Midas Funds suggests considering gold’s current bargain prices as they haven’t been seen since fall 2025.