Should you invest in gold before the October Fed meeting?

If you invested in gold in recent years, chances are good that you benefited from multiple features the precious metal offers.

Depending on when you bought it, you may have realized a significant return on your investment, thanks to the record-breaking price run the metal has experienced. You also probably weathered the economic impacts felt by decades-high inflation in a safer way, thanks to gold’s ability to hedge against inflation and diversify portfolios.

But that’s all on the assumption that you invested in gold in the right type at the right time. If you didn’t, then your portfolio may have suffered right when you needed the protection gold offers most. Fortunately, there’s still time to get invested, although many want to be aggressive now. And that means investing in gold before the Federal Reserve’s next meeting on October 29. Below, we’ll explain why.

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Should you invest in gold before the October Fed meeting?

With the next meeting held by the central bank barely a week away, investors who have yet to add gold to their portfolio may want to strongly consider doing so now. Here’s why: 

Prices could rise after the October Fed meeting

While not a guarantee, gold prices often rise when the Fed cuts interest rates and decline when the Fed raises them. Lower interest rates, after all, tend to make interest-earning vehicles less attractive, causing investors to turn to alternatives like gold instead, thus raising its price. And with the chances of a Fed rate cut on October 29 around 99% now, according to the CME Group’s FedWatch tool, another gold price hike looks increasingly likely. Get invested, then, before you get priced out of the market permanently.

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Prices could rise even before the meeting

Gold prices have been on a remarkable rise over the past two years or so. Just look at the performance of the metal since March, when it broke a record $3,000 per ounce. By early October the $4,000 mark had been surpassed, and as of October 20, the price of the metal now sits at $4,327.50 per ounce. It’s not unrealistic to expect the price to rise to $5,000 per ounce, either. 

Waiting for it to hit its next record doesn’t make sense, then, especially when you can still exploit affordable ways to get started with fractional gold bullion and a dollar-cost averaging approach. With factors like inflation, geopolitical uncertainty and concerns over domestic economic policy now, the price of gold could spike again, perhaps even before the Fed concludes its next meeting.

Your portfolio needs the protections gold offers now

With inflation rising in the most recently released report and unemployment ticking up, too, there are multiple factors that could already be eroding your portfolio, depending on what you’re invested in now. Add in growing concerns over the extended government shutdown and your portfolio could very well use the protections gold offers now versus waiting for the Fed’s next meeting to conclude. 

Consider taking the time to determine which gold type makes the most sense for your needs and goals. Just don’t wait for a “perfect” time to get started either, especially if your portfolio already needs a boost.

The bottom line

There are multiple reasons why rapid action on the behalf of prospective gold investors makes sense now, before the Fed gets together again to determine monetary policy. Start exploring the types available to you, then, and consider speaking with a representative from one of the top gold IRA companies who can answer any questions you may have. Just be careful with how much you ultimately do invest in the metal as many experts recommend capping the precious metal portion of your portfolio at 10% (accounting for other types like silver, too).