Why you should invest in gold before the 11 July 2024
- Investapedia Investment Gold
- Jul 2, 2024
- 2 min read
The precious metals market will react to the next inflation report, which can cause the price of gold to move.
The next inflation report will be released on July 11, 2024 and will show June's inflation rate. This is a crucial report to watch. Inflation had cooled in April and May.
Clever decision is to buy gold before the report comes out. Why you may want to act now:
The next inflation report is a critical one. It will give the Federal Reserve the information it needs to make the next interest rate decision. Inflation report could be good for gold.
Gold has been touted to be a solid hedge against inflation,so, if June's inflation rate ticks up from May, it could cause investors to buy more gold. And, that demand increase could result in higher gold prices.
But, there's a strong argument that gold could see gains even if inflation continues cooling.
As inflation cools, the likelihood of a rate cut grows. And, if a rate cut happens, rates on bonds, deposit accounts and other interest-based safe havens could fall - making them less attractive to investors. If that happens, gold demand could rise as investors look for ways to improve their safe haven allocations.
The value of gold as an inflation hedge will be clear if the June inflation report shows growth over May's 3.3% inflation rate. But, even if inflation cools, it's typically a good idea to consider investing in gold as a hedge against growing prices.
After all, inflation doesn't usually move in a straight line. Instead, it follows cycles of upward and downward movement. So, once inflation finds its bottom, you can expect it to heat up again. And when it does, it will be a good idea to have gold in your portfolio to hedge against inflationary pressures.
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