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Investors who expected the price of gold to moderate in 2025 may have to rethink their predictions. Despite the price of the precious metal dipping from a record high in October to a bit lower in November 2024, the price of the metal is on yet another upward swing. This comes after gold was priced at just $2,063.73 per ounce in January 2024. Currently, it’s consistently sitting in the $2,900 range with many expecting it to surpass the $3,000 price mark and, thus, another record, any day.
With the start of a new month quickly approaching and the major dynamics that have drove the price of gold to spike repeatedly, many investors may be wondering about the potential for the price to hit $3,000 this March. Below, we’ll break down three reasons why that could easily happen.
Protect your portfolio with gold before the price rises again now.
Will the price of gold hit $3,000 this March?
Here are three timely reasons why the price of gold could hit and likely even surpass the $3,000 threshold this March:
Inflation could rise
Inflation rose in October, November, December and January. If the reading for February, set to be released on March 12, shows the trend continues, the price of gold could respond strongly. That’s because gold acts as a hedge against inflation, typically rising in response to an elevated inflation rate. Many investors turn to the metal during times like these, thus causing the price to rise to meet the demand. And if that demand is strong post-inflation reading, the price could easily break the $3,000 mark.
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Interest rate news will be released
The next Federal Reserve meeting is set for March 18 and March 19. And while most don’t expect the bank to reduce its federal funds rate, the implications that come out of the meeting for the future could impact gold prices. Should the Fed hint at rate reductions later in the year, the price of the metal could tick up as lower rates often (but not always) support higher gold prices. But if the Fed mentions higher rates for an extended period, gold prices could drop in reply. No matter what the Fed does or doesn’t do, however, prospective investors should pay close attention to the price of gold during this period for potential opportunities to capitalize.
Geopolitical tensions could increase
Geopolitical tensions tend to cause the price of gold to move upward. And if tensions increase in March, which seems possible with so many overseas conflicts ongoing now, more investors could flock to the safe haven support gold is typically known for. That could cause the price to break $3,000 and possibly even $3,100, depending on the exact circumstances. On the other hand, if these conflicts cool or come to a resolution, gold could respond by falling in price. So consider monitoring gold prices daily to determine your entry into the market.
The bottom line
Predicting the future price of any asset is inherently difficult and impossible to do with precision. But if inflation rises again or if the Federal Reserve discusses rate cut action, the price of gold could rise in reply. Similarly, geopolitical tensions come with the ability to impact the price of the precious metal, too. So if you know you want the benefits of a gold investment but don’t want to pay too much more to secure them, consider exploring your gold options now, before the price potentially rises out of reach this March.
