Gold Plunges to Three-Year Low as Forecasters Trim Targets
Gold prices plummeted to a three-year low of $4,144.04 an ounce last week, marking a 3.4% decline and leaving the metal 26% below its 52-week peak.
The downturn came as two prominent forecasting houses, Wells Fargo Investment Institute and HSBC, trimmed their medium-term targets within 24 hours of each other.
Wells Fargo cut its end-2027 gold range to $5,200-$5,400 per troy ounce from a prior target of $5,400-$5,600, citing pending Federal Reserve rate hikes and a resilient dollar as the main drags. HSBC lowered its 2026 average forecast to $4,490 an ounce and its 2027 estimate to $4,825.
Asia's festive season was expected to provide some support for gold demand, but the World Gold Council noted that Chinese consumers have been deterred by high price levels and muted confidence. StoneX analyst Rhona O'Connell said Indian buying could offer support, but record-high quotes risk deterring price-sensitive shoppers.