Gold Correction Seen as Healthy Pause, Not Reversal

Gold's recent price correction is not a trend reversal, according to market analysts. The precious metal's price has pulled back from record highs near $4,500 an ounce to around $4,317. This decline is seen as a corrective phase rather than the start of a bearish reversal.

Rania Gule, senior market analyst at xs.com, believes that short-term positions opened during gold's rapid advance are being flushed out, allowing the market to rebuild a more balanced base from which prices can resume their upward trajectory. She notes that recent US inflation data came in line with expectations and that the labor market has begun showing signs of weakness.

Gule also points to a structural shift in how global reserves are managed. According to the World Gold Council's 2026 survey, 74% of participating central banks expect the dollar's share of global reserves to decline over the next five years, while 89% expect central bank gold holdings to rise over the next 12 months.