The Reasons Behind the Decline in Gold Prices

Gold, which is often preferred during periods of economic uncertainty, has entered a significant decline in recent weeks.Gold, seen as a 'safe haven' during periods of economic uncertainty, has fallen to as low as $4,116 per ounce in recent days.The expectation that the US Federal Reserve (Fed) may keep interest rates high for an extended period has been a factor in this decline. With no interest yield, gold becomes less attractive to investors in a high-interest environment, leading to increased investment in bonds and deposits. Additionally, the acceleration of withdrawals from gold investment funds has also put pressure on prices.On the other hand, there has been a significant decline in jewelry demand. It has been reported that global gold jewelry demand has fallen by more than 23% in the first quarter of 2026. Some major banks have also revised their expectations for gold prices downward.