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Gold Falls About 30% From Peak as Major Banks Cut Targets

Banks cite a stronger US dollar plus higher expected US interest rates as the key reason they have lowered near‑term and year‑end gold forecasts.

Overview

  • Spot gold has dropped roughly 30% from its recent intraday high and is trading near €3,540 (about $4,000), reversing gains from earlier this year.
  • Several large banks including ING, Deutsche Bank, Goldman Sachs and Bank of America have trimmed Q3, Q4 and year‑end price targets after the sell‑off.
  • Analysts point to a firmer US dollar, higher expected Fed interest rates and weaker ETF and retail demand as the main forces pushing prices lower.
  • Retail buyers face higher costs than the spot quote because physical gold purchases carry extra premiums for minting and dealer margins.
  • Longer term drivers—continued central‑bank purchases and elevated global debt levels—remain in place, leaving some analysts cautiously optimistic despite the near‑term correction.