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It’s been a banner year for gold. In March, the precious metal’s price crossed the $3,000 per ounce mark for the first time in history — and the upward price trajectory didn’t stop there. The price of gold has continued to climb in the time since, surging past the $3,300 per ounce mark this week.
Gold’s prices got where they are today due to several different economic factors, including inflation climbing over the last few years, volatility in the stock market and overall uncertainty about where interest rates are headed. Things have been looking up recently though, as Federal Reserve rate hikes remain paused, inflation has been dropping and the stock market volatility is starting to settle down after recent swings. That hasn’t stopped gold’s price from climbing this month, though.
That, coupled with gold’s current high price, could be giving investors pause in terms of adding more of the precious metal to their portfolios. After all, does it really make sense to buy gold with the price sitting above $3,300 per ounce?
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Gold prices soar past $3,300: Does it still make sense to invest in gold now?
It may seem counterintuitive to invest in gold as prices teeter near new highs, but there are a few good reasons why investing in gold could make sense now:
Gold prices could continue their upward trend
Gold’s impressive climb has investors wondering if the rally still has room to run — and while it’s impossible to say with any certainty that gold will continue its uphill trajectory, there’s a strong case to be made that it might. And if you want to capitalize on gold’s potential for future price growth, this could be the time to buy in. Otherwise, you could end up paying a higher price for gold in the future.
“The price of gold is certainly not as low as it was in the past, but it still can be used to provide ample diversification away from traditional asset classes, like stocks and bonds,” says Steven Conners, president of Connors Wealth Management. “The price can still go lower on gold, so of course, there are no guarantees. Despite that, I believe gold prices will continue to rise.”
Several key economic factors could continue to push gold prices even higher in the weeks and months ahead, starting with ongoing inflationary pressures. Although inflation has cooled somewhat from its peak, it remains sticky and well above the Federal Reserve’s 2% target. That persistent inflation boosts the appeal of gold, which can be used as a hedge against rising consumer prices.
Another major driver is global economic uncertainty. With geopolitical tensions looming and fears of a potential slowdown in economic growth, many investors are turning to safe-haven assets, like gold, for stability. In times of heightened risk and volatility, gold tends to benefit investors as capital flows away from riskier assets like equities and into more secure holdings.
Invest in gold today before prices rise.
Portfolio diversification matters in today’s investing landscape
The stock market has endured considerable volatility over the past month. While it appears that things are starting to normalize, you’ll be best protected from stock market volatility — and any subsequent stock market losses — if you have a diverse portfolio that can endure stock market swings. And, a diverse portfolio with a mix of safe-haven assets and more risky assets can handle market volatility with more ease than a portfolio that’s heavily invested in just stocks.
So, if you haven’t done so yet, take a moment to assess the mix of assets in your portfolio and determine whether you need to invest in assets that offer more stability, like gold. Gold is a prime candidate for the role, as the precious metal has a low correlation with riskier assets, such as stocks and bonds, which is why, when the stock market falls, gold’s value tends to rise.
“Gold, being a commodity, is mostly based on the precious metal’s price, unlike most equity investments that are more correlated with earnings and other factors like interest rates,” Connors says.
Inflation is dropping — but it’s still an issue
After four straight months of increases, inflation has dropped for two consecutive months. However, the latest inflation rate of 2.4% is still above the Federal Reserve’s target rate, which means investors may still need to hedge against the impacts of inflation — which is where gold can come in handy.
“Gold can be a great inflation hedge,” Connors says. “It will (typically) appreciate when inflation rises.”
What makes gold a reliable hedge against inflation is that when the cost of goods and services rises, the purchasing power of paper currencies tends to decline. But gold, as a tangible asset with intrinsic value, typically holds its value over time. That makes it especially appealing during inflationary periods when investors are looking to preserve their wealth and protect against the erosion of their dollar-denominated assets.
What sets gold apart is that it isn’t directly tied to any single economy or central bank policy. So while inflation eats away at the real returns of savings accounts or bonds, gold often gains in value as demand for safer, inflation-resistant assets increases. In today’s environment, where inflation remains elevated and economic uncertainty lingers, gold continues to serve as a store of value — offering both stability and a potential upside in times of financial stress.
The bottom line
Gold prices have been on a steady upward trajectory for most of 2025, pushing past previous records and rewarding those who were early investors in the precious metal. However, buying gold now could still pay off, even at today’s relatively high price. Not only is there a chance that gold’s value will continue to increase, but adding the precious metal to your portfolio will help diversify your assets and hedge against inflation, both of which could be important in today’s uncertain economic environment.
