Gold Retreats from Record Highs, Uptrend Intact

SEATTLE (Scrap Monster): Gold prices have retreated from the record highs set at the end of December, signaling the potential emergence of a fresh consolidation or corrective phase, although the core bullish trend remains intact. During the final week of 2025, the LBMA Gold Price PM declined 2 percent week-on-week, marking a pause after gold surged 67 percent in 2025, its strongest annual performance since 1979.

Market analysts attribute the pullback partly to year-end portfolio rebalancing and profit-taking, which cooled momentum following December’s aggressive rally. Reflecting this shift, global gold ETF inflows slowed, while net long positions on the Shanghai Futures Exchange declined as prices softened.

Despite the near-term correction, geopolitical risks continue to underpin gold’s longer-term outlook. Heightened tensions involving the US, Venezuela, Iran, Russia-Ukraine, and China-Taiwan relations remain key drivers supporting safe-haven demand. In parallel, expectations around US Federal Reserve policy in 2026—including rate-cut timing and the yet-to-be-announced Fed chair nominee—are closely watched.

Technical indicators suggest an “exhaustive peak”, with weekly RSI showing negative divergence and daily MACD turning lower. Initial support is seen near $4,297/oz, followed by stronger support around the 55-day moving average at $4,185/oz. On the upside, resistance lies at $4,474/oz, with a break reopening the path toward $4,550/oz.

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