Posthaste: If you think this gold price plunge is bad — just wait - Financial Post

AI desk brief

Gold is under pressure after sliding back to just over US$3,900/oz, more than 8% lower year-to-date and about 25% below its February peak near US$5,500/oz. Capital Economics expects further downside, flagging a hawkish Fed, higher real yields and a stronger dollar as headwinds, with gold seen at US$3,600 by end-2027 versus a consensus view around US$4,600 in Q4 2027.

The note also argues gold’s safe-haven role has weakened as it has tracked equities more closely, raising the risk that an AI-bubble unwind could trigger liquidation and margin-call selling. Silver is expected to underperform gold, with weaker industrial demand adding to the drag.