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Gold prices have risen sharply over the last year. The prized metal’s value has gone up over 50 percent year-to-date and over 20 percent since April, the month Donald Trump imposed reciprocal tariffs on imports.
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But on Tuesday, the gold spot price saw a big fall, going down 6 percent. This, combined with worries about whether the gold rally is about to run out of steam, has people weighing their options regarding this commodity.
Experts share mixed forecasts for gold price after steepest fall in over a decade
Veteran futures trader Carley Garner was quoted by The Street giving her opinion on the matter.
“Money is flowing into gold ETFs at an unprecedented rate under the impression that doing so is an investment in a diversifying safety asset,” she said.
“Yet, gold is a non-income-producing commodity riddled with boom-and-bust cycles. I never dreamt the spread between treasuries and gold, the two primary risk-off assets, would blow out in this manner.”
With gold prices taking a hit in recent days, Wednesday’s losses took it to a two-week low. Experts are now changing their prognosis of where the value of the commodity is heading. Ole Hansen, head of commodity strategy at Saxo Bank, is still optimistic.
“We maintain a bullish outlook for gold and silver into 2026, and following a much-needed correction/consolidation, traders will likely pause for thought before concluding the developments that drove the historic rallies this year has not gone away,” he said, as per Reuters.
Morgan Stanley thinks gold will recover its lost value and surge going into the next year. Having breached the $4000/ounce mark on October 10, the price is expected to go beyond $4,400/ounce next year, according to the investment banking firm’s research.
However, a completely different view is taken by FX Empire. They see gold prices to follow the 2006 pattern, where gold prices jumped 36 percent in two months, but collapsed in the next month, wiping off all the gains.
Also read: Gold price plunges 6% after record high, marks biggest one-day sell-off since 2013
So, AG Thorson of FX Empire sees the same phenomenon repeating with a sharp correction in the prices going into November. He is projecting gold prices to fall towards $3,500/ounce next month.
FAQs:
What is the current price of gold?
Presently, gold prices are above $4,100/ounce mark.
How low did the price go on October 21?
A sudden drop on October 21 pushed the price down to $4,054/ounce.
How much has gold’s price risen over the last year?
Gold prices have risen by 57 percent this year.
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