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. The asset manager projects gold could reach $4,789 per ounce by the third quarter of 2027, assuming forecasts for a weaker U.S. dollar and lower Treasury yields hold true.
Despite the price correction, global gold ETFs saw significant inflows in September, 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, technical indicators remain cautious. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are trading below their 50-day and 200-day moving averages, with low Relative Strength Index (RSI) readings. VanEck Gold Miners ETF (GDX) faces an even steeper recovery challenge, trading below its key averages. A move above these levels would signal improving momentum.
While the fundamental outlook for gold is improving, technical confirmation of a bullish reversal is still pending. Investors may find a buying opportunity, but they should wait for stronger signs of returning momentum before committing.