Gold Price Correction Driven by Macro Pressures
The gold price has been experiencing a volatile correction since hitting a record high above $5,595/oz in late January 2026. According to JustMarkets' analysis, this decline can be attributed to several macroeconomic pressures.
One key factor is the rise in real yields on US Treasury bonds, which have climbed due to better-than-expected employment reports and hot CPI data. This has forced market expectations from cutting interest rates to holding them steady or even raising them, making gold less appealing as a non-yielding asset.
Another factor contributing to gold's decline is the strengthening of the US dollar, which makes gold relatively more expensive when purchased with other currencies. This has led to decreased physical gold demand in some markets.
JustMarkets also notes that central bank demand for gold has become more erratic, with some banks reducing their positions in Q1. However, this does not necessarily indicate a decrease in overall demand.