The gold bull market remains unchanged but needs to take a breather! Experts: Short-term pullback may occur, building momentum for a push towards $4,000 in 2026

According to Zhitong Finance APP, recently, factors such as expectations for interest rate cuts by the Federal Reserve, ongoing geopolitical tensions, concerns about the independence of the Federal Reserve, and strong central bank purchases have prompted investors to flock to precious metals. As a result, gold prices have soared again, continuously setting new historical highs. Various signs indicate that this upward trend will continue for the remainder of the year, but traders and industry experts suggest that a healthy correction may occur before breaking the $4,000 per ounce barrier in 2026.

Renisha Chainani, head of research at Mumbai refiner Augmont, stated at the India Gold Conference in New Delhi: "The long-term bull market for gold seems to remain solid, as demand, especially from central banks and ETFs, continues to grow at a faster pace. However, gold is currently in an overbought zone, and a correction of 5% to 6% may occur in the short term, followed by consolidation and then another rise, breaking the new high of $4,200 in 2026."

On Tuesday, spot gold prices, after reaching a historical high of $3,689.27 per ounce, fell back to around $3,680 per ounce as of the time of writing. Since the beginning of this year, gold prices have risen by about 40%, and by 27% in 2024.

Almost all industry participants at the conference believe that the bull market for gold will continue until 2026 against the backdrop of lower U.S. interest rates, strong investment demand, and geopolitical risks.

Nicholas Frappell, global head of market at ABC Refinery, stated: "Analysts have been predicting that prices will reach $4,000 in 2026. But it's really hard to say, because every prediction we've seen has the price reaching that level much faster than we expected."

The market generally expects the Federal Reserve to cut interest rates at the monetary policy meeting ending on September 17. Trump has been urging the Federal Reserve to cut rates and has repeatedly criticized Fed Chairman Powell for acting too slowly.

Gold, traditionally seen as the preferred hedge against geopolitical and economic risks, also performs well in a low-interest-rate environment.

Philip Newman, managing director of consulting firm Metals Focus, stated: "Gold prices are in uncharted territory, having not lingered long in the $3,400 and $3,500 range. After this round of price increases, we expect a correction, but we also believe this presents a buying opportunity for those waiting on the sidelines to enter. By 2026, we expect gold prices to break $4,000." He also added that the company expects gold prices to rise to around $3,800 by the end of this year.

Additionally, thanks to the strength of gold and robust physical demand amid concerns over supply shortages, another precious metal, silver, has also performed strongly. Silver is both an investment asset and an industrial metal used in electronics and solar panels. On Tuesday, silver prices were around $42.50 per ounce, reaching the highest level in 14 years Chirag Thakkar, CEO of Amrapali Group Gujarat, India's leading silver importer, stated: "In addition to the conventional uses in the industrial sector, the growing interest from investors has also strongly driven up silver prices."