Gold Prices Remain Above $4,000 Amid Divided Analysts

The gold price has been on a rollercoaster ride over the past four years. It peaked at $5,595 in January before declining to around $4,161 due to inflation from the Iran war. However, despite high Treasury yields, gold remains above $4,000 an ounce.

Analysts are divided on their predictions for the future of gold prices. Bank of America predicts a fall to $3,750/oz in the fourth quarter due to near-term headwinds such as elevated inflation and a hawkish Fed. However, HSBC expects longer-term support to remain intact, with gold trading at an average price of $4,490 an ounce in 2026.

The relationship between gold and bond yields has changed since Western sanctions froze roughly half of Russia's official reserves. Central banks have accelerated efforts to diversify reserves away from dollar assets, supporting gold even when higher yields would normally weigh on the price.