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Gold investing hit an 11-year high in 2023 amid concerns over inflation and an increased need for safe-haven assets. And the price of the metal responded accordingly in 2024, breaking numerous price records in seemingly every month this year after starting January priced at $2,063.73 per ounce. The latest record saw gold surge past the $2,700 mark with anticipation high that it could exceed $3,000 per ounce, perhaps before the end of 2024.
For investors who thought gold’s price surge would continue unabated, however, November has proven otherwise. The price of the precious metal has dropped this month from record highs with the future price uncertain right now. To get a better idea about where gold could be heading, however, it helps to note how far the price has already dropped this month. That’s what we’ll break down below, noting why it may be a smart time for some to invest.
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How far has gold’s price dropped in November?
The price of gold started November strong, coming in at $2,736.35 on November 1, according to historical price data from gold IRA company American Hartford Gold. While not quite at the $2,786.44 record it hit at the end of October, it was hovering around that point and widely expected to surpass it within days. But that’s not what happened. It dropped to $2,743.98 on November 5 and has been on a downward trend since, hitting $2,598.28 on November 12.
That price marks a 26% jump from where the metal started the year — but a 5% drop from where it started in November, erasing a good portion of the increase seen throughout 2024. That said, economic factors are constantly evolving and Wednesday brought news that could affect the price of gold yet again.
After dropping for most of 2024, inflation rose in October, according to a new report released by the Bureau of Labor Statistics. Now at 2.6%, the rate jumped by two-tenths of a point in the month, moving it more than half a percentage point above the Federal Reserve’s target 2% goal.
While not a great development for the broader economy, gold — as has been shown for much of the last two years — tends to perform well during inflationary periods. During these cycles, the metal often maintains and even increases in value, thus underlining its historic reputation as a reliable hedge against inflation. So, in theory, it’s possible that some of the gold price drop experienced in the first 13 days of November could be reversed once the latest inflation report has a chance to reverberate throughout the wider economy. Waiting to invest, then, could mean paying more versus acting now.
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The bottom line
The price of gold has been on a remarkable rise all year long but November has put a halt to that run as investors saw the price tumble by around 5% since the start of the month. That said, the price drop could be an indication of additional reductions to come — or it could be a temporary blip as the metal continues its march toward $3,000 per ounce. Only time will tell which theory is right. But with inflation on the rise again and a slightly lower entry point for beginner investors, now may be a smart time to invest in gold. Just be sure to keep your investment in check, as most experts advise limiting it to 10% or less of your broader portfolio.
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