Why are gold prices falling and will the decline continue?
Gold prices have experienced a significant decline following a record-breaking rally, driven by profit-taking and rising real yields in the US. As the Federal Reserve shifts toward a rate-hike stance, investors are reconsidering gold's role as a safe-haven asset compared to interest-bearing bonds.
Why it matters
The shift in gold prices reflects broader macroeconomic trends, including inflation concerns and changing monetary policy in the United States.
Is gold losing its shine as a safe haven asset? After its record breaking rising spree in 2025 to early 2026 when it hit record highs, gold prices have been on a downward spiral. In the face of geopolitical and economic uncertainty, the popular safe haven asset has crashed.Predicted to touch Rs 2 lakh per 10 grams level, will gold now hit Rs 1..25 lakh, or even Rs 1 lakh levels in its current fall?International gold prices have fallen 26% from the record high of $5595 seen on January 29 this year.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in