Why You May Want to Consider Gold Before the Next Fed Decision

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Why You May Want to Consider Gold Before the Next Fed Decision By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: Warren Buffett Warns Against This Costly Investing Mistake — and People Over 50 Need to Pay Attention Is This Time Different?

The Macro Signals Driving Renewed Gold Interest What Gold Will and Will Not Do for Your Portfolio (and Why That Matters) Jack Bogle's Advice for Anyone Who Started Saving Too Late What Elon Musk Gets Right About Risk See full bio Published: Mar 28, 2026 4 min read Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Getty Images The Federal Reserve left interest rates unchanged in March, but another decision from the central bank will come at the end of April. Experts expect at least one more rate cut by the end of the year, and some investors may be considering buying gold before then. Here’s what the rising demand for gold means for you as the Fed assesses whether rate cuts make sense later in the year. Must ReadExperts are Bullish on Gold — Here's How to Get InGold Is Holding Steady as the Iran War Continues On — Here’s How Some Investors Are Getting Exposure How the Fed’s decisions impact gold Interest rate cuts tend to be favorable for gold, since they increase the money supply, which can cause currencies like the U.S. dollar to lose value. Gold, on the other hand, can maintain its intrinsic value which means investors have to hand over more dollars to buy it, and the price can increase. “Economic and geopolitical uncertainty also tend to be positive drivers for gold, due to its safe-haven status and ability to remain a reliable store of value,” experts at J.P. Morgan wrote in December. “It has low correlation with other asset classes, so can act as insurance during falling markets and times of geopolitical stress. More investors pay attention to gold during economic cycles that feature considerable inflation and uncertainty. While you shouldn’t go all-in with gold, investors often see it as a way to diversify beyond stocks and bonds. How much gold advisors typically recommend Whether you should invest in gold — and how much — will depend on your goals, risk tolerance and time horizon. But many experts recommend an allocation of 5% to 10% of your portfolio to gold. That makes gold a part of a diversified portfolio instead of a core holding. This small portion is based on the fact that gold does not generate income, making it a complement to bonds and dividend stocks instead of a replacement. If you aren’t sure how much to allocate to gold and how it aligns with long-term financial goals, it may make sense to speak with a financial planner. This planner can assess your age, risk tolerance, and income needs when suggesting the proper amount to invest in gold.

Where People Are Buying Gold Right NowAmerican Hartfold Gold - Get an free investor kit, plus see if you qualify for $25,000 in free silverAmerican Silver & Gold - Free account set up, free insured shipping and free storage for up to 5 yearsExplore gold exposure with a gold ETF — Public's investing app can do this for you How to buy gold You can own physical bullion and coins, but then you will have to consider storage and insurance. Physical precious metals also tend to come with higher transaction costs. Gold exchange-traded funds (ETFs) can be a simple starting point for investors who want exposure to gold. Mining stocks are another good option for gold exposure. These stocks won’t necessarily perform directly in line with gold’s price movements, but these miners can outperform gold during gold rallies. You can buy gold in a gold individual retirement account (IRA) but if you go that route, it is important to consider the tax impact of required minimum distributions (RMDs) and withdrawals. The money you take out of a traditional gold IRA is taxed as ordinary income, and RMDs will eventually force you to make annual withdrawals, which can result in a higher tax bill. Risks and trade‑offs older investors should understand Although gold can rally due to catalysts that would drag down equities, it still has some risks. Gold is volatile in the short run and can underperform when inflation is tame and stocks are rising. Precious metals also do not provide any interest or dividends, which become more important for retirees who want to live off their cash flow. Must ReadExperts are Bullish on Gold — Here's How to Get InGold Is Holding Steady as the Iran War Continues On — Here’s How Some Investors Are Getting Exposure