Gold (GC=F) opened on August futures. $4,135.40 On per troy ounce Friday, July 10, 20261.2% higher than Thursday’s opening price. Gold prices fell slightly this morning $4,115.10 at 8:00 a.m. ET.
Gold prices opened higher this morning, reversing the trend of opening lower each day so far this week. Today’s opening price for gold is 1.2% higher than Thursday’s opening price, but still 1.2% lower than this week’s prices.
Gold fell for much of the week as the U.S. and Iran became embroiled in a military conflict again this week, pushing oil prices higher and putting a permanent peace deal with Iran in real jeopardy. Oil prices (BZ=F) are currently up 7.1% over the past five days, putting rising inflation at the forefront of Fed discussions.
Despite these renewed inflation concerns, there is only a 25.1 percent chance the Fed will raise rates after its two-day meeting in late July. That percentage jumps to about 50% after the September meeting, according to the latest percentages in CME Group’s FedWatch tool.
Current price of gold
August gold futures opened 1.2% higher on Friday than Thursday’s opening price. Here’s a look at how the price of gold has changed over the past week, month and year:
A week ago: +1.7%
A month ago: -1.5%
A year ago: +24.4%
On January 29, gold’s one-year gain was 95.6%.
24/7 Gold Price Tracking: Don’t forget that you can monitor the current price of gold 24 hours a day, 7 days a week on Yahoo Finance.
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How much gold should you have?
Investing in gold can add stability and inflation protection to your portfolio. But it can also reduce your gains when stock prices are rising rapidly. Finding the right balance between the diversification benefits of gold and the potential for growth in other assets can be difficult.
Even experts are divided on how to strike the right balance. Below, five experts explain their recommended gold allocations, which range from 0% to 20%.
Learn more: How to Invest in Gold in 4 Steps
Not gold: trade-offs are high.
Robert R. Johnson, a professor at Creighton University’s Hyder College of Business, does not advocate investing in gold. In his words, “While having a small position in precious metals can reduce portfolio volatility in the short term, the trade-off between slightly reduced volatility and lost long-term returns is certainly not a sensible one, especially for Gen Z/millennials with longer investment time horizons.”
2% to 5% allocation, depending on the situation.
Brett Elliott, director of content and SEO at the American Precious Metals Exchange (APMEX), recommends an allocation aligned with your investment goals.
According to Elliott, growth-oriented investors can be comfortable with an allocation of 10% or 15%. But income investors would prefer a smaller position, as gold does not yield. A 2% to 5% gold allocation can provide some flexibility without putting too much of a drag on earning potential.
Learn more: Who decides what gold is worth? How are gold prices determined?.
5% to 8% gold allocation
Blake McLaughlin, executive vice president of Axcap Ventures, said historical data supports a 5% to 8% gold allocation. According to McLaughlin, “Gold may not offer the highest return potential for private investment, but the metal has attributes that are becoming increasingly difficult to ignore.” These attributes include the metal’s resilience amid economic uncertainty and geopolitical unrest.
5% to 15% gold allocation
Thomas Winmal, portfolio manager at Midas Funds, believes most investors would benefit from a long-term gold allocation of 5% to 15%. Winmill specifically advocates investing in gold mining companies through a mutual fund.
According to Winmal, your risk tolerance and current mix of financial vs. hard assets can guide you to an appropriate allocation.
Risk Tolerance: If you tend to panic during volatility cycles, keep your allocation percentage low.
Financial vs Hard Assets: Financial assets are stocks and bonds. Hard assets include tangible items such as real estate, gold, collectibles, classic cars and equipment. If you have no home equity and your wealth is primarily in financial assets, you can set your gold allocation higher. Or, if your home is paid off and worth more than your stock portfolio, a gold investment may not be necessary.
Learn more: Thinking of buying gold? Here’s what investors should be looking for.
20% gold allocation
Vince Stanzione, CEO and founder of First Information, recommends a 20% gold allocation, preferably in physical gold or gold ETFs. Stanzione argues for greater exposure to gold as a wealth preservation strategy. As he says, “Gold keeps up with inflation and gold keeps its purchasing power,” while paper currencies around the world are depreciating.
Learn more: Gold IRA: Benefits, Risks, and How It’s Different from a Traditional IRA
Gold price chart
Whether you’re tracking the price of gold over the past month or over the past year, the gold price chart below shows the precious metal’s change in price so far this year.