After months of massive gains, gold prices seem to have hit a threshold. The yellow metal has registered 10 consecutive days of dips, the longest streak of losses for the commodity since February 1920, more than 100 years ago. Gold breached the $5600 mark in January, but has since dipped by about 27%. Let’s discuss why the price of gold is falling, and if it will rebound anytime soon.
Why Are Gold Prices Falling?
Gold saw a massive upswing beginning from late 2025, after increased macroeconomic uncertainty and geopolitical tensions. Investors took a risk-off approach, pivoting their funds from risky bets and pouring them into safe havens, such as gold and silver. However, the tide seems to have turned over the last 10 days as the yellow metal faces its most significant battle in over a century.
Gold’s price correction could be fueled by rising energy costs after the US began military strikes on Iran. According to Bart Melek, global head of commodity strategy at TD Securities, “If the war continues and energy prices keep grinding higher, it’s not great news for gold.“
Gold’s downtrend over the last 10 days could also be due to expectations of interest rates staying high for a longer period. According to CME FedWatch, there is a 95.9% chance that interest rates will remain the same after the April 29 Federal Reserve meeting.
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Melek believes gold may have a continued struggle over the second quarter of 2026 as well. However, he anticipates the commodity to pick up steam by the end of the year on expectations of an interest rate cut. The strategist stated, “Gold is going to be under pressure for the second quarter, but I think by year-end, the gold outlook should again look pretty sweet, as we are hoping that by then central banks like the Fed will have more freedom and we could see the dollar ease and rates drop.“