Gold prices have now hit another low in the market as the precious metal rally seems to have finally halted. The current gold sell-off is triggering mayhem in the precious metals domain, with gold hitting a new price low of $4350 after rallying past $5K in its earlier phases. The onset of wars and critical economic conditions are generally considered bullish for precious metals, so why is the gold price crashing unlike anything else these days? Is there a chance for gold to reclaim its lost fortunes? Let’s find out.
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Gold Price Crash: What’s Happening
Gold prices have now crashed to their lowest levels, down to trade at $4350 at press time. It seems that the current gold prices have entered into the bear market, erasing the majority of the gains that the metal had accumulated in this while.
The metal has now crashed 20% from its all-time high, making the domain highly volatile to explore for investors as of now. As the sharp sell-off triggers panic, Crypto Patel took to X to share his reasoning behind the current gold price shakeoff.
Patel first shared his concern on how wars that are historically set up for gold to surge higher are the ones phasing it out, pushing the metal down further. This rare phenomenon is primarily triggered due to the US-Iran war and the consistent oil price spikes, which are triggering inflation fears. These inflation fears are in turn powering the US dollar, which is weighing heavily on the metals sector.
Moreover, Patel emphasized other key points, stating how the current gold volatility is a “paper flush” and not a fundamental collapse. He further added that physical gold remains elevated as central banks are continuing to purchase gold at their pace. In addition to this, JP Morgan’s year-end gold forecast remains unchanged at $6300, which further solidified gold’s current market dip as a temporary correction and nothing more.
Gold’s Potential Future
According to Rashad Hajiyev, gold prices are currently under heavy volatility, but per the expert, the worst is over, and the metal may resume its rally from April 2026.
“I think precious metals investors need to be patient for another couple of weeks. I think the worst is over for PMs, and they are largely going to form a bottoming and reversal with rallies to start early April…”
Hajiyev later shared how he expects gold to resume its rally forward soon, which may propel the asset to hit the $8K mark in due time.
“If the decline in gold is over, then it could be forming a mega triangle formation likely to resolve by early May. Every consolidation in the present 2.5-year bull run lasted 3 to 4 months. The recent setback in gold, supposedly due to war in Iran, shifts timing by 1.5-2 months. So if before I was expecting gold to top by mid-May, now I expect it by late summer 2026. However, the good news is that gold is likely to exceed my $8k target…”
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