Gold price to fall soon? Big gold rate correction is expected, warn bullion experts

Gold price jumped to record-high level on Tuesday. Spot gold rose 0.4 per cent to $3,692.87 per ounce. It hit a record high of $3,698.86 earlier in the session. U.S. gold futures for December delivery rose 0.3 per cent to $3,730.50. However, bullion experts have predicted that gold rate might see a healthy correction before breaching the $4,000 per ounce milestone in 2026.

The long-term gold bull run looks intact, as demand, particularly from central banks and ETFs, continues to rise at a faster pace, Renisha Chainani, head of research at Mumbai-based refiner Augmont said. However, gold is currently in overbought territory and may see a 5-6 per cent correction in the short term, before consolidating and rising again to reach new highs above $4,200 in 2026" she said, Reuters reported.

Spot gold was trading around $3,680 per ounce on Tuesday after hitting a record $3,689.27 earlier in the session, having gained about 40 per cent so far this year, following a 27 per cent jump in 2024.

Nearly all industry participants at the conference were expecting gold's bull run to continue into 2026 on a reduction in U.S. interest rates, strong investment demand and geo-political risks. Analysts have been hedging prices to reach $4,000 in 2026. But it's really difficult to say, because every projection that we've looked at the price has gone to that level much faster than we expected, said Nicholas Frappell, global head of institutional markets at ABC Refinery, Reuters reported.

The U.S. central bank is widely expected to cut interest rates at the end of their monetary policy meeting on September 17. Trump has been pushing the Fed to cut rates and has repeatedly criticised Federal Reserve Chair Jerome Powell for acting too slowly.

Gold, traditionally known as a favoured hedge against geopolitical and economic risks, also thrives in a low-interest rate environment.

Gold prices are in uncharted territory, having not spent too much time in the $3,400's and $3,500's, said Philip Newman, managing director at consultancy Metals Focus, adding the firm expects prices to climb to around $3,800 at the end of the year. "We could see a potential correction ahead after this price rally, but we also see that as a buying opportunity for investors who are waiting on the sidelines to get into the market. We could see gold prices scale above $4,000 in 2026," Newman said.

FAQs

Q1. What are current gold prices?
A1. Gold rate hit a record high of $3,698.86 earlier in the session. U.S. gold futures for December delivery rose 0.3 per cent to $3,730.50.

Q2. How has gold performed in 2025?
A2. Spot gold was trading around $3,680 per ounce on Tuesday after hitting a record $3,689.27 earlier in the session, having gained about 40 per cent so far this year, following a 27 per cent jump in 2024.