Shift in Gold Market Dynamics: Major Bank Lowers Forecast

As inflation and interest rate concerns resurfaced in global markets, gold prices turned downward. The escalation of tensions between the US and Iran supported safe-haven demand, but high interest rate expectations put pressure on gold. The increasing tensions between the US and Iran drove oil prices higher, but concerns over inflation and the expectation that the Fed would continue to raise interest rates led to a sharp decline in gold prices. Spot gold saw its lowest level in a week, though it partially recovered its losses today. Bank of America revised its gold forecast downward for 2026. Spot gold, which had reached its lowest level in days, continued its decline on Thursday. Concerns over inflation and the expectation that the Fed would keep interest rates high for an extended period put pressure on gold prices. Spot gold lost 0.4% in value, dropping to $4,060 per ounce, before turning upward and trading at $4,093 per ounce with a 0.46% gain. The high-interest environment weakened appetite for gold, which offers no interest yield.