Gold Prices Face Short-Term Decline, Long-Term Outlook Remains Strong
Gold prices are expected to decline for the week due to higher US real yields, a firm dollar, and hawkish central-bank policies. Despite this short-term pressure, analysts believe that structural factors will continue to support gold's long-term outlook.
The current price of gold is around $4,270 an ounce, down over 2.5% for the week. Elara Securities predicts that gold prices will trade between $4,200 and $4,700 per troy ounce by the end of CY26, with a potential rise to $5,000-$5,200 per ounce by end-CY27.
The firm also notes that global central banks have been buying gold as a strategic reserve asset, with reported purchases totaling around 130 tonnes YTD. This trend is expected to continue as prices soften.
However, analysts expect gold to remain range-bound over the next two to three quarters due to hawkish developed-market policies and elevated US real rates.