Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year? Gold epic fall and bright future explained. Here's what analysts predict and what should investors do now

Synopsis Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year is the key question for investors. Gold and silver fell after record highs. Equity markets gained. Analysts expect volatility but see support for higher gold prices later this year. Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year has become a key topic in global markets after a sharp sell-off in precious metals. Gold and silver prices dropped after hitting record highs last week. Investors shifted focus to rising stock markets, stronger economic data, and movements in the dollar and bond yields. Changes in futures trading rules also added pressure. At the same time, analysts continue to project higher gold prices later this year, supported by expectations of interest rate cuts and sustained demand. The sudden fall has raised questions about near-term volatility and long-term direction. Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year? Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year is linked to several short-term market factors. Gold fell after a sharp rally that pushed prices to record levels last week. Investors booked profits after the surge. CME Group raised margin requirements on gold futures, increasing trading costs. Rising U.S. bond yields and a stronger dollar also reduced demand for non-yielding assets like gold. At the same time, global stock markets recovered, pulling money away from safe-haven assets. These combined factors led to the 3.8% drop in gold prices. Will gold really touch $6,300 this year remains an open question for market participants. Several forecasts suggest this level is achievable. Expectations of U.S. interest rate cuts support gold demand. Central bank purchases and steady investor interest also provide backing. Analysts believe gold may move sideways in the near term as markets stabilize. If financial conditions ease and demand holds, prices could rise again later in the year and approach the $6,300 level projected by major banks. Why is gold price down 3.8% to $4,679? Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year remains a major focus for global investors. Spot gold fell 3.8% to $4,679.50 per ounce. This followed an almost 10% fall in the previous session. Gold had reached record levels just days earlier. Silver also extended losses after hitting a record last week. The sell-off came as investors shifted attention to equities, economic data, and central bank developments. Wall Street stocks rose after recent declines. The dollar strengthened. Bond yields moved higher. These factors reduced demand for precious metals in the short term. Live Events Why did gold and silver prices fall after record highs? Gold and silver fell after a sharp rally that analysts described as stretched. Gold dropped from a peak near $5,594 to around $4,700. Silver fell 27% in one session and over 34% across two trading days. This marked the largest two-day drop for silver since at least the 1980s. CME Group raised margin requirements on precious metals futures. This increased trading costs and forced some investors to cut positions. Dealers also reported pressure on silver futures funds in China. These factors deepened the sell-off in both gold and silver. How did global markets and economic data affect gold prices? Global equities moved higher. The Dow Jones rose over 540 points. The S&P 500 and Nasdaq also gained. MSCI’s global equity index edged up. European stocks closed higher ahead of key earnings and central bank meetings. U.S. economic data showed factory activity expanded for the first time in a year. New orders rose. Investors focused on company earnings and artificial intelligence funding news. This reduced safe-haven demand for gold. The dollar index rose to 97.62. Higher bond yields also weighed on gold. The U.S. 10-year yield climbed to 4.271%. Gold offers no yield, so rising yields often pressure prices. Will gold really touch $6,300 this year? Will gold really touch $6,300 this year remains a key question for investors. Several banks and analysts believe it is possible. Markets expect the U.S. Federal Reserve to cut interest rates twice this year. Lower interest rates usually support gold prices. Central bank buying and investor demand are also seen as supportive factors. While short-term volatility may continue, analysts expect gold to recover after a consolidation phase. Forecasts from major banks suggest gold could move above $6,000 and reach $6,300 by the end of the year if macro conditions remain supportive. What analysts predict? What analysts say points to a correction rather than the end of the gold rally. Despite the pullback, the long-term outlook for gold remains intact, analysts think. Markets expect the Federal Reserve to cut interest rates twice this year. Lower rates tend to support gold prices. UBS expects gold to move above $6,200 later this year. JP Morgan forecasts gold at $6,300 by year-end. Deutsche Bank maintains a $6,000 target, citing continued investor demand. Analysts note that gold is trading near levels seen just weeks ago. They say the recent fall was fast but not unusual after a strong rally. Analysts say the recent fall may limit speculative buying and attract long-term buyers. Some analysts caution that volatility may persist before prices stabilize and move higher. Analysts also say it is early to confirm a price bottom. Gold may consolidate before moving higher in coming months. What should investors do now? What should investors do depends on their risk profile and time horizon. Analysts suggest avoiding panic selling during sharp price swings. The recent fall may discourage speculative trading and open opportunities for long-term investors. Monitoring interest rate expectations, dollar movement, and bond yields remains important. Investors may consider phased buying instead of lump-sum exposure. Experts also advise diversification rather than heavy allocation to a single asset. Gold may see further short-term fluctuations, but long-term fundamentals remain a key focus for investors tracking gold prices. FAQs Q1: Why is gold price down 3.8% to $4,679 and will it really touch $6,300 this year? Gold fell due to profit booking, higher margins, rising yields, and a stronger dollar. Analysts still expect gold to reach $6,300 if rate cuts and demand support prices. Q2: Is the gold bull run over after the recent fall? Analysts say the fall is a correction. Gold prices remain near levels seen weeks ago. Expectations for rate cuts and investor demand suggest the bull trend may continue. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. ...moreless (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. ...moreless Explore More Stories Transport Canada recalls nearly 20,000 Toyota vehicles over serious injury risk; Check out the reason behind this decision Quote of the day by ancient Greek philosopher Aristotle: 'Friendship is a single soul dwelling in...' Justin Bieber’s emotional return lights up Grammys 2026 after long hiatus Ashes of Creation future in jeopardy: CEO of Intrepid Studios Steven Sharif steps down, board’s WARN Act sends video game in cold storage; here’s what you need to know Quote of the day on truth and threat by Snoop Dogg: ‘I tell the truth and…’ ‘Canada is not Minnesota’: Canadian Minister makes big claim on immigration, opens up on US immigration raids weeks after Good and Pretti’s killing; here’s what he said Word of the Day: Lectern Extreme winter weather set to grip Canada this weekend, snow, freezing temperatures, and heavy rain across five provinces Three missing Quebec girls rescued in Richmond Hill, Toronto man and teen charged with human trafficking, police warn of potential additional victims Trump escalates US-Canada trade tensions, threatens Bombardier jets and 50 percent tariffs over aircraft certification dispute Quote of the day by Steve Jobs: ‘Innovation distinguishes between a…’ Who are the Alberta separatists, and what are their demands? Quote of the Day by Michael J Fox: 'I think the scariest person in the world is the person with no...' 1 2 3