Gold slid more than 5% on Monday, reaching its weakest level of 2026 after
logging its worst week in about 43 years, as an escalating Middle East conflict
stoked inflation concerns and raised expectations of higher global interest
rates.
Tim Waterer, Chief Market Analyst, KCM Trade
• Gold’s appeal is weakening due to higher expected global interest rates amid
the ongoing Iranian conflict.
• High liquidity in gold is hurting it during this risk-off period.
• Stock market downturns are forcing gold positions to be closed to cover margin
calls on other assets.
BMI, Unit of Fitch Solutions
• The shift from safe-haven allocation to macro-driven positioning may push gold
prices further down.
• A stronger U.S. dollar and reduced probability of Fed easing dominate market
sentiment.
Hardika Singh, Economic Strategist, Fundstrat
• Higher bond yields, driven by expectations that Fed rates will remain steady,
increase the opportunity cost of holding gold.
• Higher yields have played a significant role in the recent decline of gold
prices.
ING Strategists
• Upward momentum in gold has faded.
• Some investors are selling gold to raise cash or rebalance portfolios.
Ed Yardeni, Wall Street Veteran
• Optimistic long-term view: gold could reach $6,000 by year-end.
• However, the year-end target may be lowered to $5,000 if gold fails to rise
amid geopolitical tensions, rising inflation, and mounting U.S. government debt.
Wayne Gordon, Investment Adviser, UBS Wealth-Management Unit
• The magnitude of gold’s selloff is not unprecedented, but the pace is
unusually fast compared to historical occasions.
David Wilson, Director of Commodities Strategy, BNP Paribas SA
• Gold’s reaction follows historical precedent from prior economic shocks (2008,
2020, 2022).
• Initially, gold falls as investors sell assets to hold U.S. dollars, but all
previous periods were followed by a sustained rally.
Greg Shearer, Head of Base and Precious Metals Strategy, JPMorgan
• Current gold decline reflects a “contagion risk” from a broad sell-everything
environment.
• Concerns exist that combined economic, energy, and FX pressures could change
central bank gold flows and buying behavior.
• Longer term, JPMorgan remains bullish: prolonged energy disruptions and rising
inflation and growth impacts could quickly create a materially bullish backdrop
for gold.
