How much will the price of gold fall?

The potential fall in the price of gold can be analyzed based on several factors and predictions from different sources:

Impact of Trump's Election Win

Following Donald Trump's election win, gold prices dropped significantly due to expectations of higher inflation, increased bond yields, and a stronger U.S. dollar. Gold futures fell by as much as 3% to $2,673 per troy ounce, shedding about 5% of its value since its recent peak at $2,805 per troy ounce1.

General Market Outlook

• Analysts predict that if the U.S. dollar strengthens and real interest rates rise, gold prices could be pressured downward. A stronger-than-expected dollar coupled with higher real interest rates could lead to sustained weakness in gold prices throughout the year4.

Technical Analysis

• Some technical indicators suggest a potential correction in gold prices. For example, a "Double top" pattern forming on the 4-hour chart could lead to a breach of the neckline at $2,291.80, potentially pushing the price down to $2,112.97 if the pattern holds5.

Specific Predictions

• If the current rally ends and a downward correction begins, gold prices could fall to levels between $2,148.21 and $2,047.66, according to technical analysis5.

Summary

While there are various scenarios, here are some key potential drops:

• A short-term drop following Trump's election win: around 5% from its peak to $2,673 per troy ounce1.
• A potential technical correction: down to $2,112.97 or a range between $2,148.21 and $2,047.665.
• General market pressure: sustained weakness if the dollar strengthens and real interest rates rise, though specific price targets are not provided in this context4.

These predictions indicate that the extent of the fall can vary widely depending on the underlying factors and market conditions.