Robert Kiyosaki, author of Rich Dad Poor Dad, has made a candid admission about his gold predictions, stating he was wrong about gold's recent direction while maintaining his bullish long-term outlook. According to reports from LiveMint and ANI, Kiyosaki admitted on X that 'GOLD just made the turn. I think and I have been wrong, the price of gold and silver are about to rise for a long time.' However, he has now projected a price target of $35,000 within five years, representing a dramatic increase from current levels. The admission contrasts with his earlier bullish stance, as he had previously suggested gold 'just made the turn' and referenced analyst Jim Rickards' similar high targets. Posting on X, Kiyosaki described the falling price of gold as 'great news' and said he was watching technical charts while assessing broader economic conditions, adding that understanding the direction of the economy was more important than focusing solely on price movements. Kiyosaki advised investors to focus on long-term investing rather than short-term market fluctuations, emphasizing that the current decline should not deter long-term precious metals investors.
Despite Kiyosaki's optimistic long-term outlook, gold and silver prices have extended their losing streak, heading for a fourth consecutive weekly decline as reported by LiveMint. Spot gold recently fell below $4,000 per ounce for the first time since November 2025, touching $3,972 an ounce, according to Reuters. US gold futures for August delivery fell 1% to $4,007.30 while spot silver also weakened, declining 3.2% to $56.01 an ounce. Gold has now fallen below the key $4,000-an-ounce level for the first time since November 2025 after breaching the threshold earlier this week. The metal is down about 29% from its record high of $5,594.82 an ounce touched on January 29 and is on course to end the week with losses of around 4%. Spot gold has shed more than $1,500 per ounce since reaching its all-time high earlier this year, reflecting the significant correction from peak levels. Currently, spot gold trades near $4,050 to $4,080 per ounce, down roughly 1.31% in the latest session, as reported by LiveMint.
Despite the sharp decline, market experts suggest gold may find technical support just below current levels. Tai Wong from Reuters noted that gold has technical support just below $3,900 per ounce and suggested that the gold trade may remain out of favour for some time but a period of consolidation is more likely than a collapse. ING recently revised its outlook and now expects gold to average $4,300 per ounce in the third quarter of 2026 and $4,600 in the fourth quarter, while J.P. Morgan Global Research has projected that gold prices could average as much as $6,000 per ounce by the final quarter of 2026. These forecasts reflect expectations that central bank demand and broader macroeconomic factors could continue to support the precious metals market. Despite the current weakness, gold remains up sharply over longer periods, having gained more than 21% in the past year and over 126% across five years, as reported by LiveMint.
The recent decline in precious metals has been attributed to several key factors according to Reuters. A hawkish Federal Reserve, a stronger dollar, and lower inflation expectations are putting significant pressure on precious metals, as higher interest rates reduce gold's appeal compared with interest-bearing assets. The US dollar has strengthened against major currencies, making dollar-denominated commodities more expensive for international buyers, typically reducing demand for gold and other precious metals. Market participants have also cited easing tensions in parts of the Middle East as a factor behind the recent decline, as during periods of uncertainty investors often move funds into assets perceived as stores of value, but as geopolitical concerns have eased, part of that demand has weakened. Despite the current weakness, some prominent investors remain positive on gold's long-term prospects. Financial commentator Peter Schiff reacted to the latest move on social media, writing: 'Gold just traded below $4,000. An even better buy. Silver is down to $58.60.'
Jeremy Grantham, the 87-year-old co-founder of GMO who has spent six decades identifying asset bubbles, warns that the US stock market is in the largest bubble in American history, with the AI boom creating what he calls the 'biggest investment bubble in history'. Speaking on CNBC, Grantham estimates the current US market trades at 35 to 40 times earnings — higher than the 35 times seen at the dot-com peak in 2000. He forecasts a potential 70% decline from current levels, citing historical precedents where similar bubbles have taken decades to recover. Grantham warns that the so-called 'Magnificent Seven' — Alphabet, Nvidia, Tesla, Microsoft, Meta, Apple, and Amazon — have no monopolies left after years of profiting from near-monopolies, with all seven now competing in the same AI arena. He singles out SpaceX as a classic top-of-the-bubble story, valued at roughly $3 trillion on promises of asteroid mining and Mars colonization, describing it as the 'classic description of a market peak'. Grantham's bubble model holds that every prior speculative extreme eventually reverts to trend, with a retreat toward historical norms pointing to a drop closer to 70% than 50% in the biggest winners, though the timing could range from two weeks to two years.
