Gold Enters Consolidation Phase Amid Fading Momentum

Gold is currently in a consolidation phase after hitting its recent high, and experts say it's not yet time to jump on board. According to analysts at Moomoo, the long-term drivers of gold's price, de-dollarization and central bank accumulation, remain intact.

The key question now is whether central bank demand can persist at elevated price levels. Emerging-market central banks are still steadily accumulating gold, while traditional holders have occasionally trimmed positions. Global official gold reserves remain near historical highs, with no sign of a systemic retreat.

However, short-term technical momentum is fading, and the risk of chasing the current price outweighs the potential reward for most investors. The price is approaching key support levels, but confirmation is still lacking. If the dollar continues to strengthen, gold may face further pressure.

The bull market in gold is not over, but patience is more valuable than spending ammunition in a noisy market. Analysts recommend waiting for one of two signals: price pulling back to key support and showing signs of stabilization, or breaking above the previous high with strong volume.