Gold retreats after record high but analysts see resilience ahead
Gold prices have dipped this week after hitting a record peak in late 2025. The metal closed at $4,342 per ounce on Friday, down nearly 5% over the past seven days. Despite the retreat, analysts suggest the decline reflects a temporary pause rather than a broader downturn.
The recent pullback follows a sharp rally that pushed gold to an all-time high of $4,562 on December 26, 2025. Since then, the price has fallen by roughly 4.8%, settling above key support levels. The 50-day moving average, currently at $4,247.37, and the $4,300 mark are now critical thresholds to monitor.
Technical indicators show a neutral stance, with the 14-day Relative Strength Index (RSI) at 57.7—neither overbought nor oversold. This consolidation comes after an extended upward surge, which saw central banks and investment funds drive demand. In 2024, central banks alone accounted for over 20% of global gold purchases, well above historical averages. Meanwhile, exchange-traded funds (ETFs) boosted holdings in the third quarter of 2025, as geopolitical tensions, a weaker dollar, and low interest rates reinforced gold’s appeal as a safe-haven asset.
Even with the latest dip, gold remains firmly above its 52-week low of $3,941.30, suggesting a medium-term uptrend stays intact. The coming weeks will determine whether the price can stabilise above the 50-day average and regain momentum toward its recent peak.
The metal’s performance in early 2026 hinges on holding key technical levels. While short-term volatility persists, the broader outlook remains supported by strong institutional demand and favourable macroeconomic conditions. Gold’s position well above its yearly low signals resilience amid shifting market sentiment.
