Gold prices have dropped back to levels not seen since December 2025, erasing much of the premium that fueled their earlier rally. WisdomTree reports that the gap between actual gold prices and its model-implied valuation has largely closed, suggesting a potential buying opportunity for gold ETFs. The asset manager projects gold could reach $4,789 per ounce by the third quarter of 2027, assuming a weaker U.S. dollar and lower Treasury yields.
Despite the price correction, gold ETFs saw significant inflows in September, with global funds attracting approximately $10 billion, equivalent to 67 tonnes, even as bullion prices declined 8.5%. North America led the inflows, followed by Europe and Asia, indicating that investors are using the dip to increase their exposure. Fiscal uncertainty and concerns over sovereign debt sustainability are also boosting gold’s appeal as a store of value.
However, risks remain. A stronger dollar, elevated real yields, or a more hawkish Federal Reserve could renew selling pressure. Three gold ETFs to watch include SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and VanEck Gold Miners ETF (GDX). Each offers different exposure to gold, with varying expense ratios and investment strategies.
Technical indicators suggest the rebound is not yet confirmed. GLD’s 14-day Relative Strength Index (RSI) was at 22.79 on Friday, trading below its 50-day and 200-day moving averages. IAU and GDX showed similar patterns, with GDX facing the steepest recovery challenge. A move above the 50-day averages, followed by a sustained break above the 200-day averages, would strengthen the case for a trend reversal.