Gold prices fall to $4,365 as analysts stay bullish on rebound

10:18

By: Dakir Madiha

Gold prices fall to $4,365 as analysts stay bullish on rebound

Gold prices have retreated sharply from recent highs, with spot and futures contracts trading around $4,365 per ounce in early June 2026. The metal previously reached a record above $5,400 in January before entering a sustained correction phase that has now lasted three months. The decline has been driven by stronger US Treasury yields, persistent inflation pressures, and a firmer US dollar.

The January peak marked a historic moment for gold markets, but momentum weakened soon after. Despite the correction, the metal still posted a 6 percent gain in the first quarter of 2026, with an average price of $4,873 per ounce. Futures markets fell about 5 percent in a single week in May as easing geopolitical tensions between Russia and Ukraine reduced demand for safe-haven assets while energy prices fluctuated.

US 10-year Treasury yields climbed to 4.52 percent on June 5, increasing pressure on non-yielding assets such as gold. Higher yields improved returns on government bonds and reduced the relative attractiveness of precious metals. Market participants also monitored signals from the US central bank, where policymakers indicated they remain open to tighter monetary conditions if inflation risks persist, particularly those linked to ongoing geopolitical instability involving Iran.

Despite the selloff, major financial institutions maintain bullish forecasts. Some analysts expect gold to regain momentum and move toward $5,000 per ounce by late 2026, supported by sustained central bank accumulation and strong investment demand. Monthly purchases are estimated at around 60 tonnes, reinforcing structural support for prices. Research firms also highlight that current levels around $4,400 may represent a consolidation zone rather than the start of a deeper downturn.