Expectation of a decline in gold prices: Analysts warn of new lows
As ounce gold falls to a three-month low, experts warn that new lows could be seen in the short term. While Fed policies, bond yields, and energy prices increase pressure on the market, the long-term bullish expectation remains intact.
The acceleration of sell-offs in gold prices in recent weeks, with ounce gold falling below $4,000, has sparked a new debate in the markets. Precious metals analyst Przemyslaw Radomski predicts that prices could fall to their lowest levels of 2026 in the short term, while noting that the long-term upward trend has not yet ended.
The need for cash in the market and losses in stocks are causing pressure on gold, which is seen as a safe haven. OCBC strategists attribute gold's inability to recover despite the decline in US bond yields to market fragility, while expecting a relaxation in oil prices and a decrease in real interest rates for prices to stabilize.
TD Securities Senior Commodity Strategist Ryan McKay stated that the possibility of the Fed keeping interest rates high and heavy selling by systematic funds are deepening the decline. According to CME FedWatch data, the probability of the Fed raising interest rates in December is priced at 79.4 percent. Technical analyses show that gold remains below its 100-day moving average and that the $4,015 level is the first resistance point.
Sources
- dunya.com · Link