Will gold prices fall further? Check reasons behind the recent dip, forecasts and more

Gold has fallen sharply in 2026 amid rising US bond yields, a stronger dollar, inflation concerns and investor profit-taking. Central-bank buying.

Gold’s fall has left investors wondering whether to buy, wait or sell. Prices have dropped around 5% in 2026 and 13.6% over six months. According to TradingView, spot gold stood near $4,194.65 per ounce on 10 October.

Why are gold prices falling?

Rising US bond yields are the main reason for the recent fall. The US 10-year Treasury yield has climbed to around 5.27%. Gold does not pay interest, making higher-paying bonds more attractive to investors. This can reduce demand for gold.

A stronger US dollar has also put pressure on gold prices. The Dollar Index has gained over 3% this year. Fears of further US interest-rate increases have also weighed on gold.

Higher crude oil prices linked to Iran conflict concerns have increased inflation worries. Continued uncertainty and investors booking profits after record highs have also pressured gold.

International gold prices have fallen roughly 26% from 29 January’s peak of $5,595. Indian prices have declined nearly 23%.

Why do experts remain positive?

Mirae Asset MF points to central bank buying as a reason for optimism. It expects the central bank demand to be near 700 tonnes in 2026. That exceeds the 2010-2021 average of 470 tonnes. Central banks buy gold to spread their reserves across different assets.

Emerging economies are also reducing their reliance on the US dollar. Gold remains attractive because it can preserve value and is easily traded.