Grok’s 2026 Gold Forecast: Why the Precious Metal Could Finally Tumble

Gold's long-held safe-haven status faces a direct challenge from digital assets. Grok's analysis points to a perfect storm brewing for 2026.

The Digital Gold Rush

Bitcoin and its brethren aren't just speculative toys anymore—they're becoming institutional-grade hedges. Major funds are allocating more to crypto, draining capital that once automatically flowed into bullion. The narrative is shifting from 'store of value' to 'programmable, high-growth store of value.'

Interest Rates & The Real Yield Punch

Persistent higher real interest rates make holding a zero-yielding asset like gold brutally expensive. When Treasury yields outpace inflation, the opportunity cost of parking wealth in a shiny rock becomes impossible for big money to ignore. Capital seeks yield, not museum pieces.

Technological Obsolescence

Gold's physicality is its Achilles' heel. It's costly to store, secure, and move. Digital assets settle in minutes, cross borders seamlessly, and can be integrated into decentralized financial applications. In a digital-first world, a heavy metal feels increasingly archaic.

The final trigger? A sustained risk-on rally in equities coupled with crypto market maturation. If traditional finance finally embraces digital asset ETFs and custody at scale, the exodus from gold could accelerate dramatically. After all, Wall Street loves a new fee-generating product more than it loves a centuries-old tradition. The ultimate irony? The very 'uncorrelated asset' managers used for decades might be undone by the speculative tech they once dismissed.

Grok Predicts Gold’s Fall: Here’s Why

Davis took to X to conduct an interesting experiment, asking Grok about the worst-performing assets of 2026. The AI was given a choice between Bitcoin and gold to select from, with the Twitter AI selecting gold as the asset falling off a cliff in the near future.

Hey @grok, remove the asset that will perform the worst in 2026. pic.twitter.com/JoVfsL3M8C

Grok shared its reasoning behind the asset, claiming that based on forecasts, Bitcoin could gain $165k driven by accumulation and cycles, while gold may fall due to its constant ascent to $5k, which may later trigger a volatile period.

I'd remove gold. Based on forecasts, Bitcoin could see 100%+ gains to $169k in 2026 driven by accumulation and cycles, while gold's upside to $5k/oz is more modest at ~16% amid stability. Volatility aside, BTC has higher potential. Not financial advice.

Can Gold Truly Fall Off The Radar?

As per CoinCodex stats, Bitcoin is currently sitting at $90k and is expected to fall further below to $80k by 2027.

Moreover, the gold price is forecasted to rise steadily on the radar, hitting $5k to $6k as per the latest forecasts and predictions, bringing a new outlook to the table.

Gold broke out in March 2024 from a 13-year Cup & Handle formation. Since then gold is rallying in a parabolic mode having gained 120% in less than 2 years. Most importantly, run is not over.

Silver broke out from its 45-year Cup & Handle formation a month ago. Can't even… pic.twitter.com/loX5nfM1Vl