Gold prices and interest rates: What to watch this week

Federal Reserve involvement complaint argumentation quality announced this week could interaction golden prices. Getty Images

The price of gold has surpassed truthful galore records successful the past twelvemonth oregon truthful that it's arguably go commonplace astatine this constituent successful 2025. Starting astatine conscionable $2,063.73 per ounce successful January 2024, the terms of golden arsenic of May 6, 2025, is present $3,396.43 for that aforesaid amount. Or, described different way, the terms of golden has soared by astir 65% successful little than 18 months. That makes it 1 of the fastest-growing assets to put successful close now, peculiarly considering that golden prices thin to lone determination upward implicit clip (accounting for insignificant fluctuations and declines).

But portion gold's terms changes daily, prospective investors and those who person already added the precious metallic to their portfolios whitethorn beryllium peculiarly funny successful the imaginable for the terms to alteration this week. With the Federal Reserve acceptable to conscionable for the archetypal clip since March and with an announcement connected the aboriginal of the national funds complaint acceptable to beryllium released connected Wednesday, those successful the golden marketplace volition beryllium paying adjacent attention. Typically, a emergence successful the national funds complaint causes golden prices to rise, portion a diminution determination volition origin golden prices to fall. So what, then, volition hap to golden prices this week? That's what we'll analyse below.

Invest successful golden earlier the terms rises again present now.

Gold prices and involvement rates: What to ticker this week

While it whitethorn not beryllium the quality those already invested successful golden privation to hear, the likelihood is that golden prices volition stay dependable but comparatively unchanged this week, astatine slightest based connected the historical narration betwixt golden and involvement rates. 

That's due to the fact that the national funds complaint is improbable to beryllium reduced, astatine slightest according to astir economists' predictions. The CME Group's FedWatch tool, for example, has the complaint remaining astatine the existent level listed astatine an astir 100% certainty arsenic of May 5. If a emergence were much likely, past golden prices would beryllium much inclined to spike. And if a chopped was expected, arsenic it looks progressively apt for the Fed's gathering successful July, past golden prices could decline. With neither enactment expected this week, then, golden prices are apt to stay astir the $3,400 terms scope they've been successful caller days.

That noted, gold prices are driven by much than conscionable the Fed's complaint chopped actions oregon deficiency thereof. Items similar inflation, marketplace and economical conditions, geopolitical tensions and much tin besides interaction golden prices, possibly importantly if 1 oregon much of these considerations alteration dramatically. Understanding this fluidity, then, combined with the likelihood that the Fed won't change the existent golden terms trajectory (for the clip being), those considering golden should look to put promptly, earlier marketplace conditions inevitably origin the terms to emergence again, possibly putting it permanently retired of scope for many.

Get invested successful golden online today.

Will the terms of golden deed $4,000 soon?

It wasn't that agelong agone that speculation was precocious implicit golden hitting the $3,000 per ounce milestone record. But that happened successful March. Now, however, each eyes person turned toward the precious metallic breaking the $4,000 terms point. And portion nary 1 knows for definite erstwhile that could happen, oregon what marketplace conditions volition request to harvester to motivate that surge, it looks much apt present than astir could person imagined erstwhile golden was hardly implicit $2,000 per ounce successful aboriginal 2024.

"Gold prices tin perfectly scope $4,000 per ounce if economical uncertainty and ample marketplace sell-offs continue," Ben Nadelstein, caput of contented astatine Monetary Metals, precocious told CBS News. "Interest rates falling backmost towards zero could besides propel golden prices past the $4,000 per ounce people arsenic investors determination retired of dollars and into thing that tin inactive present a existent yield."

Understanding this reality, investors considering the hedge against inflation and portfolio diversification that golden tin supply should powerfully look to get started now, earlier the terms rises again. And they should research ways to put successful the metallic without having to wage today's apical costs (like with fractional gold, for example). Waiting for a diminution successful the price, however, could beryllium problematic, considering that it's improbable to diminution successful a worldly way.

The bottommost line

The humanities narration betwixt golden and involvement rates indicates that golden prices volition stay elevated this week, but are improbable to spike overmuch higher if the national funds complaint stays frozen. Still, with aggregate factors driving gold's price, it wouldn't beryllium shocking to spot gold's terms emergence again soon, either. So don't fto predictions connected rates and prices unreality your investing judgment. If you cognize your portfolio could usage the assistance that golden has historically provided, it inactive makes consciousness to get invested now.