Gold price prediction 2026: Gold price today crashed by over six per cent even as bullion experts have cautioned about gold rate in 2026. U.S. gold futures for April delivery were down 3.3 per cent to $4,586.20 per ounce.
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Spot gold fell 6.1 per cent to $4,565.79 per ounce after shedding more than 9 per cent on Friday in its sharpest one-day drop since 1983. The metal has lost more than $1,000 since hitting a record high at $5,594.82 on Thursday, erasing most of this year’s gains.
On Wall Street, stocks of metals miners tumbled as the price of gold dropped 11.4 per cent to settle at $4,745.10 per ounce. Gold’s price suddenly ran out of momentum following a tremendous rally where it roughly doubled over 12 months. It topped $5,000 for the first time on January 26 and was around $5,600 at one point on Thursday.
Gold Rate Prediction in 2026
A rout in gold rate intensified on Monday after top commodity exchange CME Group raised margin requirements following a collapse in metals prices last week that was triggered by Kevin Warsh’s nomination as the next Fed chair.
“The Warsh nomination, whilst likely being the initial trigger, did not justify the size of the downward move in precious metals, with forced liquidations and margin increases having a cascading effect,” said KCM Chief Trade analyst Tim Waterer.
“Warsh’s policy approach has been generally supportive of the dollar and by inference, negative for gold, due to his focus on inflation and dim views on quantitative easing and excessive Fed balance sheets.”
Investors still expect at least two rate cuts in 2026. Non-yielding bullion tends to perform better in low-interest-rate environments.
📉 Why Did Gold Prices Fall on Monday?
Market experts believe gold prices crashed mainly due to these reasons:
- Stronger US dollar after fresh economic data
- Rise in bond yields reducing gold’s appeal
- Profit booking after record-high levels
- Reduced safe-haven demand in the short term
Despite the fall, analysts say gold’s long-term fundamentals remain strong.
CME Group announced hikes in margins on its precious metal futures on Saturday and said the changes were set to take effect after market close on Monday.
An increase in margin requirements is generally negative for the affected contracts, as the higher capital outlay can dampen speculative participation, reduce liquidity, and pressure traders to unwind positions.
A stunning coda to a record-breaking price rally, the crash is wiping out leveraged investors who, in turn, are selling other assets to cover margin calls on silver and gold.
Stock markets around Asia slid, while U.S. equity futures also dropped.
Spot gold may retrace further into a range of $4,361-$4,476 per ounce after it failed to stabilise around a key support of $4,662, Reuters technical analyst Wang Tao said.
“This obviously is a very aggressive move today after a (similar one) on Friday because Asia and European markets are just now reacting to what happened on Friday in U.S. hours,” said Ilya Spivak, head of global macro at Tastylive.
“The larger narrative continues to be gold supportive, but clearly we hit some sort of a speculative speed bump here and there’s a sort of rearranging of portfolios, especially shorter-term portfolios that are impacted by these margins,” Spivak said.
Analysts at J.P. Morgan said despite the recent volatility, they expected the rally to remain intact in the longer term.
“We remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets,” they said in a note.
❓ FAQs on Gold Price Prediction 2026
1. Why did gold prices crash on Monday?
Gold prices fell due to a strong US dollar, higher bond yields, and profit booking at higher levels.
2. Is the gold rally over after this fall?
Experts say no. The fall looks like a short-term correction, not the end of the long-term uptrend.
3. What is the gold price prediction for 2026?
Analysts expect gold prices to remain strong in the long term, with chances of new highs by 2026.
4. Is it safe to invest in gold after the crash?
Experts suggest buying gold gradually during dips instead of investing a lump sum.
5. Which factors will support gold prices till 2026?
Inflation, central bank buying, global uncertainty, and possible interest rate cuts may support gold prices.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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