Gold prices fell by more than 3% on September 28, dropping below $4,200 per ounce. Throughout the day, prices retreated from $4,400 down to $4,150.
The decline in gold was driven by the Federal Reserve’s interest rate policy, rising oil prices, and heightened inflation expectations amid the US-Iran standoff.
As a result, gold prices fell below $4,200 for the first time since August 5. On September 29, the metal recorded an increase of approximately 0.6%.
According to analysts, rising interest rates make non-yielding gold less attractive to investors. At the same time, increasing energy costs reinforce expectations that inflation will remain high and that the US Federal Reserve may pursue a stricter monetary policy.
Nevertheless, gold remains a focal point for investors in the long term. Central banks increasing their gold reserves, demand from investment funds, and geopolitical risks are listed as key price-supporting factors.
Experts note that in 2025, investment demand accounted for more than 50% of total gold demand. This figure includes purchases by central banks, investment funds, and retail investors.
China also remains a key buyer in the gold market. Analysts report that the country’s share of gold is increasing against the backdrop of a declining share of US Treasury bonds in its foreign exchange reserves.
Forecasts regarding the future price of gold remain high. JP Morgan and UBS forecast prices to rise to $5,400 by the end of 2027, Goldman Sachs projects $5,400 to $5,600, and Deutsche Bank estimates a rise to $5,150.
Some experts believe even higher prices are possible. Aton analyst Andrey Lobazov stated that gold could appreciate up to $6,000 during the year. According to him, a key driver for price direction will be the global geopolitical situation.
At the same time, analysts emphasize that gold may experience sharp fluctuations against the backdrop of high prices. Therefore, the metal is considered primarily a long-term investment and diversification tool.
