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Gold prices remain capped at $4,000 amid inflation and rate hike fears but could rise next year, says Jefferies.

Market News
04 Aug 2026
Kitco
View Source
Bullish
pluang ai news

Gold prices have been stuck around $4,000 an ounce due to persistent inflation and expectations of Federal Reserve rate hikes, which increase the cost of holding gold. The U.S.-Iran conflict has disrupted oil supply, keeping energy prices high and fueling inflation concerns. Despite a 25% drop in gold since early 2026 rate hike expectations shifted, Jefferies analysts see potential for gold to rise next year if real-rate pressures ease. Factors like central bank buying, geopolitical risks, and fiscal concerns also support gold's outlook. Jefferies advises investors to consider accumulating gold and gold mining stocks as the market resets and rate expectations evolve.

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