The bull market in gold remains unchanged but needs to take a breather! Experts: There may be a short-term correction, preparing for a push towards $4000 in 2026.

Recently, factors such as expectations for the Federal Reserve to cut interest rates, ongoing geopolitical tensions, concerns about the independence of the Federal Reserve, and strong central bank purchases have led investors to flock to precious metals. Therefore, the price of gold has once again soared, setting consecutive historical highs, signaling that this upward trend is likely to continue for the rest of the year, but traders and industry experts suggest that a healthy pullback may occur before breaking the $4000 per ounce mark in 2026. Renisha Chainani, research head at Mumbai-based refining company Augmont, stated at the India Gold Convention in New Delhi, "The long-term gold bull market seems to remain strong as demand, especially from central banks and ETFs, continues to grow at a faster pace. However, gold is currently overbought and may experience a short-term correction of 5% to 6%, followed by consolidation before rising again to a new high of $4200 in 2026." On Tuesday, the spot gold price hit a historic high of $3689.27 per ounce before falling to around $3680 per ounce at the time of writing. Gold prices have risen by about 40% this year and by 27% in 2024. Almost all industry insiders present believe that the bullish market for gold will continue into 2026 under the backdrop of lower US interest rates, strong investment demand, and geopolitical risks. Nicholas Frappell, Global General Manager of ABC Refinery, stated, "Analysts have been predicting that prices will reach $4000 in 2026. But it's really hard to say because every prediction we've seen has happened much faster than we expected." It is widely expected that the Federal Reserve will cut interest rates at the monetary policy meeting ending on September 17. Trump has been urging the Fed to cut rates and has criticized Fed Chairman Powell for acting too slowly. Gold, traditionally seen as the preferred hedge against geopolitical and economic risks, has also performed well in a low-interest rate environment. Philip Newman, Managing Director of consulting firm Metals Focus, said, "Gold prices are in uncharted territory, having spent little time in the $3400 and $3500 range previously. After this price increase, we expect a pullback, but we also believe it is a buying opportunity for investors waiting on the sidelines. By 2026, we expect gold prices to break $4000." He also added that the company expects the price of gold to rise to around $3800 by the end of this year. Additionally, due to the strength of gold and the robust physical demand under supply shortage concerns, the price of silver, another precious metal, has also shown strength. Silver is both an investment asset and an industrial metal used in electronics and CECEP Solar Energy panels. On Tuesday, the price of silver reached around $42.50 per ounce, reaching its highest level in 14 years. Chirag Thakkar, CEO of leading silver importer Amrapali Group Gujarat in India, stated, "In addition to conventional industrial uses, the growing interest of investors has strongly driven the rally in silver prices."