11 hrs ago
Gold Prices Dip as Investors Weigh Risks and Forecasts
Gold prices have recently gone down, and some investors are wondering what to do.
One reason is that US bonds are paying more, while gold does not pay interest.
A stronger US dollar and worries about inflation and higher interest rates have also made gold less appealing to some buyers.
Some investors have also sold gold to take profits after prices reached record highs.
But central banks are still expected to buy a lot of gold, which could help support prices.
Demand in India during festivals and wedding season may also help.
JPMorgan expects gold to become more expensive later, but it has lowered some of its forecasts.
These forecasts are estimates, and gold could still fall further.
Spot gold was near $4,194.65 per ounce on October 10, according to TradingView.
Gold has fallen about 5% in 2026 and 13.6% over six months; international prices are about 26% below their January 29 peak.
Rising US Treasury yields, a stronger dollar, rate-hike concerns, oil-linked inflation fears and profit-taking have pressured prices.
Mirae Asset MF expects central-bank gold demand near 700 tonnes in 2026, above the 2010–2021 average of 470 tonnes.
JPMorgan forecasts an average price of $6,000 per ounce in the fourth quarter of 2026 and about $6,300 by late 2027, while warning investor interest has weakened.
- Who
- Gold investors, central banks, Mirae Asset MF and JPMorgan.
- What
- Gold prices have declined, with market pressures and forecasts pointing to both further downside risk and longer-term support.
- Where
- International markets, including India.
- When
- The article reports prices as of October 10 and forecasts for late 2026 and 2027.
- Why
- Higher US bond yields, a stronger dollar, interest-rate and inflation concerns, and profit-taking have pressured prices; central-bank buying and other demand may support them.
Factors weighing on gold
Factors supporting gold
Investment demand
Factors weighing on gold
Higher Treasury yields, a stronger US dollar and fears of further interest-rate increases can make gold less attractive.
Factors supporting gold
Central-bank buying and emerging economies' efforts to reduce reliance on the US dollar may sustain demand for gold.
Price outlook
Factors weighing on gold
Further weakness remains possible, and JPMorgan lowered its 2026 forecast; its Greg Shearer said investor interest had weakened amid energy and inflation uncertainty.
Factors supporting gold
JPMorgan still forecasts an average of $6,000 per ounce in the final quarter of 2026 and about $6,300 by late 2027.
Other demand factors
Factors weighing on gold
Higher crude oil prices and profit-taking after record highs have added pressure to prices.
Factors supporting gold
Risks involving energy supplies, trade routes and government debt, as well as India's festive and wedding demand, could support gold.
Key facts
- Spot gold price
- Near $4,194.65 per ounce on October 10, according to TradingView.
- Recent decline
- About 5% in 2026 and 13.6% over six months.
- Peak comparison
- International gold prices are roughly 26% below the January 29 peak of $5,595; Indian prices are down nearly 23%.
- US 10-year Treasury yield
- Around 5.27%.
- Central-bank demand estimate
- Mirae Asset MF expects demand near 700 tonnes in 2026, compared with a 2010–2021 average of 470 tonnes.
- JPMorgan forecast
- An average of $6,000 per ounce in the fourth quarter of 2026 and around $6,300 by late 2027.
- Forecast revision
- JPMorgan cut its fourth-quarter 2026 forecast from $6,300 to $6,000 compared with its February 2026 estimate.
Quotes
Greg Shearer
JPMorgan representative who commented on investor interest in gold.
“...with growing worries that the Fed might have to respond to energy-driven inflation with hikes, gold is on the back burner for most investors at the moment.”
livemint.com
Sources
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