With gold futures down nearly 9% since October 20, major Wall Street firms, including Morgan Stanley, Goldman Sachs, and UBS, expect the precious metal to rebound in 2026. However, Macquarie has gone against the trend with a bleak warning.
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“With global growth beginning to rebound, central bank easing cycles near an end, real interest rates still relatively high and tensions between the US and China easing (at least for now), we suspect the near-term peak is in, with prices likely to fall over the coming year,” said Macquarie chief economist Ric Deverell in a note.
Macquarie Warns of Gradual Gold Drop Despite Fed Cutting Cycle
Macquarie added that prices could climb if geopolitical tensions rise and that it expects gold to remain above $2,000 per troy ounce for the duration of President Trump’s term. The investment firm also expects a gradual decline in price instead of a sudden drop.
Macquarie’s warning comes despite the Fed being likely to cut rates by another 25 bps in December, a move that typically supports gold prices.
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