Gold Prices Plummet 22% Amid War-Driven Decline
Gold prices have plummeted to their worst quarterly performance since 2013, with a record high of $5,595 per ounce reached in January followed by a sharp decline. The drop was driven by energy inflation and expectations of interest rate increases linked to the Iran war.
A Reuters poll of 29 analysts and traders revealed that gold price forecasts have been cut for the first time since late 2023, with the median forecast now standing at $4,509 per troy ounce in 2026. This marks a reduction from $4,916 estimated three months ago, representing the first downward revision in 11 quarters.
Analysts noted that central banks remain a reliable source of demand for gold, despite purchases moderating from recent record levels. However, they expressed less optimism about jewelry consumption, particularly in India and China, due to high prices weighing on demand.