I have recently noticed that many people are asking: Will gold prices decline after this strong upward wave? And the truth is, the answer isn't as simple as it seems. Last year was exceptional for gold — it rose by more than 64% and hit consecutive all-time highs. But what happened after January was completely different. We entered a new, more complex, and less clear phase. Gold is now moving under clear pressure from one side, but there are strong supports from another.

Let me explain the pressures first. Rising US interest rates make gold less attractive — that's well known. A strong dollar increases the cost per ounce for global buyers. US bond yields jumped from 4.01% at the beginning of March to 4.44% by the end. All of this puts pressure on the yellow metal. And indeed, we saw a sharp correction — gold dropped about 21% from its January peak, and on April 6, it fell to $4,658 after strong US jobs data.

But here comes the key point: Will gold prices continue to fall? The realistic answer: maybe not. Because there are factors strongly supporting the price. Central banks are still buying avidly — the World Gold Council expects about 850 tons to be purchased in 2026. Investment demand is very strong. Gold ETFs absorbed 801 tons last year. And geopolitical risks haven't disappeared — the Middle East remains tense.

What I’ve noticed is that major institutions no longer see gold as a lost asset. JPMorgan expects $6,300 by the end of 2026. UBS forecasts $6,200 mid-year and then $5,900 at the end. Macquarie is more conservative at $4,323 but remains positive. This means the market is betting on a recovery later.

The most likely scenario now is a limited dip followed by stabilization, not a prolonged collapse. Gold is moving between roughly $4,500 and $4,800. If monetary pressures continue, we might see more decline. But if talk of rate cuts resumes or geopolitical tensions escalate, gold could rebound quickly.

How to deal with this volatility? Don’t buy everything at once. Divide your entries into stages — buying on every 5% or 10% dip gives you a better average cost. Use technical analysis to identify real support zones. Look for clear confirmations before entering. If you want to hedge against a decline, you can open short positions via CFDs.

The last point: don’t confuse a temporary dip with a long-term downtrend. What we see now appears more like a natural correction after an exceptional rise, not a loss of gold’s strategic role. Serious investors are still buying. Central banks are still accumulating. This means opportunities exist for those who are patient and move wisely.