Gold Prices Likely Stuck Until Fall or Early 2027

According to Colin Cieszynski, chief market strategist at SIA Wealth Management, gold prices are likely to remain range-bound until fall or possibly early 2027. The ongoing conflict involving Iran has created significant volatility in energy markets and inflation expectations, leading the Federal Reserve to adopt a cautious approach.

Cieszynski noted that while much of the war premium was already priced into the market, the sell-off from $5,500 to $4,000 did not fully eliminate all war-related concerns. He suggested that gold remains at an elevated level and there is worry that interest rates may need to rise.

The strategist observed that inflation data has been lagging and warned that if oil prices continue to climb, inflation could begin to rise again within one to two months. This scenario, he said, could lead to a stronger U.S. dollar, which would act as a headwind for gold.