March was an exciting month for those with a stake in gold. Gold prices reached record highs since July 2020, which leaves many to wonder what April will hold for the precious metal. Analysts have started to take note of the fact that the markets are performing in contradiction to messaging from the Federal Reserve, leading some to believe that April will set brand new records for gold.
Silicon Valley Bank Collapse
It’s only been a few weeks since news broke that Silicon Valley Bank had collapsed, setting off alarm bells signaling a new banking crisis. The new forecast shows rate cuts on the horizon, and while a financial crisis potentially looms, gold is beginning to prove the safest bet. Despite the fallout from Silicon Valley Bank, gold continues to trade at higher levels than we’ve seen in years, with all-time highs within reach. All of these signs point to a low-risk future for those with an interest in gold.
There is no way to be certain how long these tumultuous economic times will last given the fall of Silicon Valley Bank. However, the Federal Reserve is expected to cut back on lending, which is likely to lessen the stress and strain on banks. Though the banking crisis is far from over, being ahead of the curve will help investors make smart choices to mitigate losses.
Employment in March
Another critical factor to consider when anticipating the road ahead for gold prices is a key indicator for the success of the United States economy: employment. These figures can be quite telling of how rates will fluctuate. It is estimated that nearly a quarter of a million jobs were created in March 2023, which is encouraging, however, unemployment rates have stayed markedly the same.
What Lies Ahead for Gold in April
Based on March employment statistics, experts are projecting that the price of gold will continue to rise, but not before first taking a temporary dip. Currently, gold is valued at $2,000 per ounce. The average price of gold is expected to hit $1,975 per ounce in Q2 before achieving highs of $2,050 per ounce and $2,100 per ounce in Q3 and Q4 respectively. For investors, the key is to think of gold with a long-term mindset, not a short-term one. While it’s likely to see incremental changes day to day, over time gold is headed towards its peak.
The first round of deposit outflows has subsided, however, some analysts predict that a second wave is coming, with balances shifting from banks into money market funds. Investors are prioritizing safety amongst all of the present volatility. Higher rates have made this change even more attractive, with yields higher than they’ve been in years.
How Long Will Gold Prices Last?
Unlike other types of investments, gold is a tangible asset with limited availability, guaranteeing that it will always retain its value. Gold is always a smart investment, but that rings doubly true when the market faces uncertainty and banks are on the verge of collapse. Though the Federal Reserve is likely to influence minor shifts in the value of gold, over the long term gold prices will only continue to rise. Gold is the perfect way to hedge your bets and protect yourself against potential losses in other types of investments.
When you are ready to take advantage of these all-time high gold prices, Gold Rush is your go-to source. Our team of specialists makes every effort to ensure that your experience selling your gold for cash is discreet, comfortable, and seamless from start to finish. We provide free consultations, and we are ready to offer you the highest possible payout.
