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Gold Prices Plunge 20% by 2026: What's Next for the Yellow Metal?
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News18•04-10-2026, 08:36
Gold Prices Plunge 20% by 2026: What's Next for the Yellow Metal?
- •Despite predictions of a rise during the US-Iran conflict, gold prices have fallen by 20% this year.
- •Gold, typically a safe haven during crises, saw an unexpected decline in prices after reaching record highs.
- •International gold prices continued to fall, with a weekly decline of 3.4%, closing at $4,140 per ounce.
- •Fears of rising crude oil prices and inflation, leading to potential interest rate hikes by central banks, are driving the gold price drop.
- •The upcoming Federal Reserve meeting and its decision on interest rates will significantly impact the future direction of gold prices.
Key Questions Answered
Despite initial military tensions from the US-Iran conflict, global financial markets feared rising inflation from crude oil spikes, leading central banks like the US Federal Reserve to consider raising interest rates, which put heavy downward pressure on gold and silver prices.
Globally, spot gold prices fell 0.9% to close at $4,140 per ounce, while gold futures dropped 1% to reach $4,162 per ounce, resulting in a total weekly decline of 3.4%.
With US inflation easing slightly, financial markets shifted expectations from a tough rate hike to potentially keeping interest rates stable at current levels, dropping the estimated probability of a hike from around 70% down to 22%.
