Finam analysts warn how low gold prices could fall before the next buying opportunity.

Gold prices could fall to $3,100, but even that would only be a correction after a 65% increase by 2025. This is the assessment of Nikolai Dudchenko, an analyst at Finam Financial Group, one of Russia's largest brokerage and investment firms.

Nikolai Dudchenko Chia this view during a conversation with BeInCrypto's editor-in-chief, Vladimir Arkhireysky.

Why is the price of gold falling?

The primary reason, according to fundamental analysis, is concern about the direction of the US Federal Reserve's (Fed) adjustments to the benchmark interest rate .

Amidst ongoing tensions in the Middle East, investors are concerned that the Fed will be unable to lower interest rates, which is a negative factor for gold prices.

In addition, based on the downward trend in gold prices, experts suggest that the cause may be a large investor selling off their positions.

This explanation is quite plausible. If it's true, the price of gold may soon rebound.

How long could the decline last, and what are the target levels?

If negative developments occur, the price of gold could break below $4,200 and fall to around $4,000. In the worst-case scenario, the price could even continue to the $3,600 range, and in the most pessimistic scenario, to $3,100.

All these fluctuations can still be considered a correction phase, especially since the price of gold has increased by nearly 65% ​​in 2025 alone.

What should investors do?

The advice at this time is to observe the market and avoid rushing to "buy the Dip" when prices are falling sharply. For those who do not yet have a position, the most sensible strategy right now is to stay out of the market and wait for clear signs of a reversal.

If gold prices show signs of recovery and resume their upward trend towards $5,000, investors may XEM buying. This scenario is still considered to have a high probability.

It's true that buying later might mean paying a higher price than now, but this helps protect against the risk of a continued downward price trend.

For investors who already hold gold, it's advisable to continue holding but to monitor the situation closely. If prices continue to fall, consider reducing your holdings to mitigate risk and have cash available to buy back at a better price.

Silver: Reasons for the price drop and the extent of the decline.

The reason for the decline in silver prices is similar to that of gold, primarily due to the Fed's interest rate policy. Currently, the key support zone for silver is at $62–$64 per ounce.

Sellers are still trying to break through this support level, but the market remains uncertain. If silver falls below this mark, it could reach the next support level at $54.5–$55 per ounce.