What's Happening?
Standard Chartered's Global Head of Commodities Research, Suki Cooper, has indicated that gold prices are 'ripe' for a near-term pullback before gaining momentum in 2026. The bank notes that ETF gold buying has accelerated in 2025 to levels not seen in five
years, suggesting strong investor interest. Despite the rally, Cooper believes that prices are overbought and due for a correction. The demand in India remains robust, and the bank anticipates that after a short-term correction, gold prices will hit fresh highs in 2026.
Why It's Important?
The prediction of a near-term correction followed by a rally in gold prices is crucial for investors and market participants. It highlights the cyclical nature of commodity markets and the importance of timing in investment strategies. The anticipated correction provides an opportunity for investors to reassess their positions and potentially capitalize on lower prices before the expected rally. The continued demand for gold, particularly in major markets like India, underscores its enduring appeal as a store of value.
What's Next?
Investors and market analysts will likely monitor economic indicators and central bank policies closely, as these factors could influence the timing and extent of the predicted correction and subsequent rally. The potential for further geopolitical tensions and economic uncertainties may also impact gold prices. Standard Chartered's forecast suggests that investors should be prepared for volatility in the short term but remain optimistic about long-term gains.
