Why gold came under pressure

The first quarter of 2026: more than just a review

The start of 2026 was marked by a high degree of uncertainty. Confidence in existing financial systems began to show cracks, US government debt continued to rise, and geopolitical tensions escalated. In such an environment, capital increasingly seeks stability and security.

Gold benefited significantly from this development. A clear upward trend had already set in during 2024, which continued to accelerate into early 2026. The price reached new highs, at times exceeding the USD 5,500 mark. This development primarily reflected the growing need for value preservation and hedging.

However, as prices rose rapidly, market momentum also increased. Rising prices often attract additional capital that tends to be short-term in nature. This can amplify a trend and, at times, cause it to become detached from the underlying fundamentals. In this context, the start of the year marked a peak in this development.

New market priorities

Over the course of the first quarter, the focus in the markets shifted. Among other things, this was triggered by the escalation in the Middle East, coupled with rising energy prices. As a result, inflation and the response of central banks once again came more sharply into focus.

Consequently, expectations regarding future interest rate movements adjusted. Interest rate cuts became less likely, whilst the US dollar gained strength. Both factors put pressure on the gold price, as alternative investment forms temporarily became more attractive.

At the same time, many market participants took advantage of the high price level to take profits. Following the sharp rise of recent months, such a move is not unusual and further reinforced the correction that was already underway.

The result was a noticeable decline in the price of gold, despite continuing global uncertainties. Some of the gains made previously were given up again in the first quarter. At first glance, this development appears contradictory, but it follows a shift in the weighting of influencing factors.

On closer examination, however, it becomes clear that this is less a fundamental trend reversal than a market-driven adjustment. Short-term factors such as interest rates, currencies and positioning can significantly influence the price of gold. The overarching drivers, however, remain in place.

Conclusion
The decline in the first quarter may come as a surprise at first, but it can be clearly explained by the changed market conditions. Following the sharp rise, expectations have shifted; many market participants took profits, and interest rates and currencies regained greater significance. Despite this correction, the fundamental environment for gold remains intact. The good news is that the long-term trend therefore remains intact.