The price of gold has fallen, and there may be further room for decline in prices.

In the early session of the Asian market, the price of gold fell. Spot gold fell by 0.2% to $4,018.77 per ounce. Although the market expects the price of gold to rebound after falling to $4,000 per ounce, Hamad Hussain of Capital Economics believes that this precious metal still has further room for decline in the next 18 months. He pointed out that the prospect of the Fed raising interest rates will increase real yields and put pressure on the price of gold. The economist stated that a potential sharp drop in the stock market could also exert greater downward pressure on the price of gold, as investors often have to sell quality assets to meet margin calls during sudden sell-offs in the stock market. Capital Economics expects the price of gold to fall to $3,500 per ounce by the end of 2026 and $3,250 per ounce by the end of 2027.