Decline in gold prices: Year-end expectations revised

Gold prices, which broke historical records by exceeding 5,000 dollars per ounce at the beginning of the year, fell below the 4,000-dollar threshold in October. Following the Fed's policies, major banks and analysts have revised their year-end expectations downward.

Gold, which peaked by rising above 5,000 dollars per ounce in the first month of the year, dropped below 4,000 dollars as of October. While Goldman Sachs Research had forecast 4,900 dollars for the year-end in August, expectations for a September Fed rate hike changed the outlook. Wirex Market Analyst Yves Renno predicts that gold will remain in the range of 4,000 to 4,400 dollars until the end of 2026.

The Fed's high interest rate policy and the strengthening dollar index are influential in the market decline. Facet Chief Investment Officer Tom Graff stated that potential rate hikes from the Fed in 2027 could strengthen the dollar and deal a blow to gold. On the other hand, it was noted that central banks continue to stockpile gold against economic risks, and Connecticut College Economics Professor Purba Mukerji along with other experts emphasize that U.S. interest rates and bond yields must decline for spot gold to see 5,000 dollars again.