Gold Prices Fall for Three Consecutive Days, Where Will They Be by End of 2026?

Global gold prices closed lower on Wednesday (8/7/2026) after oil prices surged and inflation concerns intensified. The worries were compounded by US President Donald Trump’s statement that a temporary deal to end the conflict with Iran had expired.

According to Refinitiv, gold closed at US$4,076.32 per troy ounce on Wednesday, down 0.72%. The decline extended gold’s losses to 2.4% over three consecutive days. On Thursday (9/7/2026) at 07:07 Western Indonesia Time, the price edged up 0.03% to US$4,078.72 per troy ounce.

David Meger, director of metals trading at High Ridge Futures, said the drop in gold was triggered by the escalating conflict between the US and Iran. “The main factor in today’s movement is the rising tension between the US and Iran. With the chances of a ceasefire diminishing, almost all risk assets are under pressure, including gold,” Meger said, as quoted by Reuters.

Tensions flared again after Iran claimed to have attacked US military bases in Bahrain and Kuwait in retaliation for Washington’s strikes on Iranian targets following a tanker attack incident in the Strait of Hormuz. The situation sent oil prices soaring more than 5%.

The spike in energy prices has the potential to trigger higher inflation and prompt central banks to maintain or even raise interest rates. Although gold is known as a hedge against inflation, the precious metal tends to be less attractive when interest rates are high because it offers no yield.

Meanwhile, minutes from the Federal Reserve’s 16-17 June meeting showed that US central bank officials’ concerns about inflation are mounting. Several members even argued there were grounds to raise interest rates soon. Market expectations have shifted accordingly. Based on the CME FedWatch Tool, the probability of the Fed raising rates in September rose to around 69%, up from 62% the previous day.

Bank of America has cut its average gold price forecast for 2026 by 14% to US$4,360 per troy ounce, anticipating a more hawkish Fed. Nevertheless, the bank still sees a chance for gold prices to reach US$5,000 per troy ounce once the monetary tightening cycle concludes.