As the conflict in Iran drove oil and energy prices higher, gold fell by around 27% from its previous highs. By raising interest rates, central banks also increased the appeal of US bonds and strengthened the US dollar at the expense of gold.

Corrections of this kind have happened before. Gold slumped by some 28% in 1973 and by around 25% in 2006, but neither episode marked a break in the long-term trend. In each case, the market was consolidating after earlier growth and pausing after a strong run.

Against this longer-term backdrop, gold’s future potential remains an open question. Corrections after strong rises are a natural part of the market cycle, but gold’s potential is far from exhausted, opening up space that investors should not overlook. Higher interest rates can also slow economic activity at certain points, after which monetary policy may be eased. This kind of environment generally tends to favour gold.

Demand for gold is also being buoyed by other factors, such as persistent inflation and a gradual shift in how some traditional financial assets are perceived. Private and central banks have recognised this too, and their continued purchases confirm gold’s strategic role in reserves while adding further upward pressure on its price.

History shows that gold has held its value better than most assets. While purchasing power tends to decline over time, gold has continued to preserve value across decades.

Over the long term, gold’s price may move in cycles, but it ultimately reflects rising demand and limited supply.

 

A rare commodity

This limited supply is a key factor. Gold mining has not increased significantly in recent years, and few new deposits are being discovered. Unlike fiat currencies, gold cannot simply be added to circulation by a decision of a central authority. This reinforces its long-term appeal as a way to diversify a portfolio.

Although gold has reached record levels this year, a number of institutions are still forecasting further price growth. JP Morgan Chase estimates that gold could reach around USD 6,300 by the end of 2026, while Bank of America gives a figure of approximately USD 6,000, BNP Paribas USD 6,250, and Wells Fargo a range of USD 6,100 to USD 6,300.

 

No need to buy gold bars to invest in gold

From an investor’s perspective, the question is not only whether to invest, but also how to enter the market. Today, there are options such as modern solutions from IBIS InGold, which make it possible to invest in gold incrementally, without needing a large amount of capital at the outset. Regular investment can be a long-term component of a portfolio and a stable foundation for the future.

 

https://www.tyzden.sk/promotion/134489/vyuzite-moment-ked-trh-ponuka-priestor-pre-rast-zlata/