Can I buy gold now? Seize the key moment for gold investment

Gold prices have already broken through the $4,000 mark, a milestone in the eyes of many investors. But the question is—is it still worth buying gold now? Is there still a chance for prices to go even higher? This article will analyze from fundamental, technical, and practical perspectives to help you determine the most cost-effective time to buy gold.

Why Gold Prices Have Soared to Record Highs

To understand whether you can buy gold now, you first need to know why gold prices have risen so dramatically.

Since October 2023, gold has been on an upward trend, rising from $2,700 in just 14 months to break through in October 2024, and by November 2025, it has stabilized above $4,000. According to a Reuters survey of analysts, the average gold price in 2025 is expected to be around $3,400, with an average of about $4,275 in 2026.

The core reason is quite simple—investor confidence in traditional assets is weakening.

Global quantitative easing has been excessively frequent, leading to a rapid loss of cash purchasing power. Although the US's unlimited quantitative easing since 2020 solved domestic liquidity issues, it transferred inflationary pressures to the global stage. The aggressive rate hikes in 2022, while controlling inflation, also significantly devalued US and global debt, further weakening trust in the dollar and US bonds.

Meanwhile, modifications to Basel accords have also played a role. Gold has been redefined as a first-class capital asset, with its liquidity recognized as equivalent to government bonds and cash, making it one of the highest quality assets. This change has greatly encouraged central banks and financial institutions worldwide to buy large amounts of gold, because compared to the continuously printed cash, gold's scarcity and extraction costs increase year by year, enhancing its value preservation potential.

Additionally, frequent geopolitical risks have increased demand for safe assets among central banks, making gold naturally a preferred hedge.

Is It a Good Time to Buy Gold—Timing Is Key

In short: gold still has investment value, but timing the entry is very important.

In an environment where the US continues to cut interest rates and the dollar weakens, gold's status as a "first-class asset" will persist. With trillions of dollars flowing out of the currency markets, gold's purchasing power will continue to be supported.

However, competition for gold is also increasing. Bitcoin has already surpassed $100,000, reaching a new all-time high, and the US President has even declared that Bitcoin will be treated as a strategic asset reserve. This suggests that more capital may flow into the crypto market in the future, diverting funds from gold. At the same time, rate cuts are bullish for the bond market, which will also attract investment.

Gold will likely continue to rise in the future, but the growth rate may slow down, and volatility could increase, as more alternative products compete. Instead of asking "Can I buy gold now?", it’s better to consider "When is the best time to buy gold?"

Looking at the one-year performance of Bitcoin and gold, Bitcoin's gains far exceed those of gold, with greater volatility. For conservative investors, gold remains a relatively stable choice. The price trends of US stocks, gold, and US bonds also indicate that gold is at a relatively high level, with potential for slower growth and increased market volatility.

The Best Timing to Enter Gold: Technical Analysis Provides the Answer

Buying gold should not be a blind follow-the-market move; it requires combining market changes to find the right entry point. The best time to buy is when prices pull back, especially amid rising safe-haven demand and accommodative monetary policies.

From a technical perspective, gold prices are still in an upward channel. According to Bollinger Bands, gold prices fluctuate within the Bollinger range, and the lower band of the channel is an ideal entry point. When gold approaches the lower Bollinger band, it signals a buying opportunity. Investors can operate along the Bollinger channel, avoiding chasing high prices blindly.

Gold prices are not rising nonstop. Historical data shows that gold has experienced multiple pullbacks. Entering during these retracements allows investors to buy at lower costs and profit better when prices rebound.

Simply put, whenever gold falls back to the lower Bollinger band, it’s an ideal entry point for long-term investors. Unless US political forces force central banks to hold a specific proportion of US bonds, based on the current economic landscape, gold’s long-term investment value remains attractive.

How to Minimize the Cost of Buying Gold

There are many ways to invest in gold; choosing the right tools can reduce costs.

Physical gold (bars, jewelry) has large spreads, poor liquidity, and high storage costs, making it unsuitable for individual investors.

Gold futures and options offer good liquidity with narrow spreads, but require high account opening thresholds, high margin requirements, and low capital efficiency. Options have nonlinear payoffs and are more complex, making them less suitable for non-professional investors.

CFD contracts are derivatives tracking spot gold, allowing investors to leverage on price movements. The advantages are convenient trading, no need to roll over contracts like futures, and less complexity than options. They are a flexible and low-cost tool, making CFDs more suitable for individual investors to participate in gold trading.

Who Should Invest in Gold

Gold is both a currency and a commodity, and also a major asset class. From central banks and hedge funds to individual investors, anyone with surplus funds can consider investing in gold.

Central banks invest in gold to hedge against inflation and for strategic reserves; gold has stood the test of history from both monetary and commodity perspectives.

Global hedge funds regard gold as a core holding because its price movements have low correlation with other major asset classes, helping to smooth net asset value fluctuations and serve as a risk management tool.

Individual investors can diversify assets through gold investments. Gold’s hedging and inflation-resistant functions can help assets grow over the long term.

The key is to choose the most suitable investment tools and cycles for oneself.

Summary

The rise of gold prices to record highs indeed reflects a decline in global confidence in traditional assets. From a fundamental perspective, gold will still trend upward in the medium to long term; technically, short-term pullbacks are good entry points. Is it a good time to buy gold now? The answer is—the best time is near the lower Bollinger band. Instead of chasing highs, patiently waiting for a correction and participating with the right tools (like CFDs) at the lowest cost is the wise investor’s approach.