Will the price of gold hit $3,000 this February?

A gold investment is known for many features. A hedge against inflation has always been a major one, thanks to its ability to maintain value during inflationary periods. A reliable portfolio diversifier was another, thanks to that steady price. 

But, in recent years, it’s also been known for its tremendous price surge, with the price of the precious metal rising by almost 40% from where it started at $2,063.73 per ounce in January 2024. That remarkable surge continued this week when gold again rose past another record, currently sitting just under $2,900 per ounce. At $2,861.95 per ounce as of February 6, gold is closer than ever to hitting – and potentially surpassing – the $3,000 mark. But will it break that threshold this month? Below, we’ll explain why it may.

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Will the price of gold hit $3,000 this February?

Speculating about the future price of any asset, particularly one like gold, is impossible to do with precision. However, there are some scenarios where the price of the metal could hit that $3,000 milestone, perhaps as soon as the next few weeks. Here’s how it could potentially happen:

Inflation could rise: Gold has a unique relationship with inflation. Typically (but not always), the price of gold rises when inflation does. And if the next reading released on February 12 (for January) shows yet another rise, the price of gold could easily move into the $3,000 per ounce territory. Many would argue that this is likely to happen, considering that inflation already increased in October, November and December. So keep an eye out for this possibility mid-month and consider getting invested now at the lower entry price point.

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Geopolitical tensions could change: Geopolitical tensions are one of the key drivers behind gold’s price. And if there are changes there, more investors could turn to gold for it’s safe-haven features. That renewed interest could then cause a spike in gold’s price, as we’ve already seen numerous times over the past year.

Market conditions could evolve: The stock market tumbled earlier this week before rebounding a bit. Any number of factors, either individually or collectively, can cause market turbulence. And if that instability is consistent or lengthy, the price of gold will rise to compensate for renewed interest among investors. “Gold prices seem to protect against bad economic times, which some refer to as the pessimism about the future conditions factor. People seem to flock toward gold when the economy is in bad shape,” Steve Azoury, ChFC and owner of Azoury Financial in Troy, Michigan, previously explained to CBS News.

The bottom line

The conditions are right for gold’s price to increase, perhaps past the $3,000 mark, this February. With inflation rising again, geopolitical tensions elevated and market conditions unpredictable, all three factors could combine to cause the metal to again break a new price record. Whether you’re a beginner or veteran investor, then, it may make sense to get started with gold now as the price of the metal come March 1 could look a lot different.

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