Gold Prices Could Fall by Up to 37% in 2026, Says World Gold Council

The World Gold Council (WGC) has indicated that gold prices could decline by as much as 37% from this year`s peak if current market trends continue. According to the council`s latest report, a drop below US$3,857 per ounce could trigger further downside, with the next major support level expected around US$3,500 per ounce.

At the time of the report, spot gold was trading at approximately US$4,063.80 per ounce, while the London Bullion Market Association (LBMA) afternoon gold price had declined by 1% to around US$4,027 per ounce. Since the beginning of the year, gold prices have already fallen by 7.8%.

The report attributes the recent decline to changing interest rate expectations after the U.S. Federal Reserve kept interest rates unchanged. In addition, geopolitical tensions between the United States and Iran, along with concerns over crude oil prices and inflation, have influenced investor sentiment.

The World Gold Council also noted that lower inflows into Gold Exchange-Traded Funds (Gold ETFs) reflect investors reassessing market conditions. If gold falls below US$3,943 per ounce, analysts expect the correction to deepen, with the next key technical support zone between US$3,857 and US$3,887 per ounce.

Despite the bearish outlook, the report added that a stronger Japanese Yen could help limit further declines in gold prices by increasing demand for safe-haven assets.