Golds nine week streak snapped as traders reassess rally

Highlights:

• Gold prices broke a nine-week winning streak, retreating sharply after hitting a record high of US$4,381.52 per ounce earlier in the week.
• The pullback came as traders took profits and reassessed an overbought rally, while softer U.S. inflation data boosted hopes for two potential Fed rate cuts by year-end.
• Investors are closely watching the upcoming U.S.–China talks between Donald Trump and Xi Jinping, which could ease geopolitical tensions and further influence safe-haven demand.

Bullion pullback follows overbought run, easing inflation data and improved US-China outlook

Gold ended a nine-week winning streak as the market took profit after a blistering run, with the remarkable rally now being reassessed as overextended. At the time of writing, bullion has pared losses after a softer-than-expected US inflation report boosted hopes of further easing by the Federal Reserve and sent bond yields slightly lower.

Inflation, rates and trade tensions in focus

The weaker-than-anticipated US inflation print reinforced the view that interest rates could be cut, which usually supports gold, a non-yielding asset. Bond yields inched down as markets priced in the possibility of two rate reductions before year-end. At the same time, investors are weighing prospects of improved US-China relations — with Donald Trump and Xi Jinping slated to meet in the coming days. A breakthrough on trade would ease one of the geopolitical pillars underpinning safe-haven demand for gold.

All-time high, sharp correction, and ETF outflows

The streak came after gold surged from mid-August to a record high of about US$4,381.52 an ounce.The sharp reversal in gold prices was accompanied by heavy withdrawals from gold-backed exchange-traded funds, representing the biggest one-day decline in holdings in five months, as per Bloomberg data. The sharp sell-off underscores how quickly sentiment can shift in the commodities space once momentum stalls.

Outlook: Cautious optimism

While the longer-term bullish fundamentals—such as central-bank buying, persistent debt and meaningful inflation—remain in place, the near-term terrain is patchy. As liquidity retreats from the highs, technical vulnerabilities and evolving macro signals suggest volatility could remain elevated. Traders will be closely watching upcoming inflation prints, Fed commentary and trade-talk progress for the next directional cue.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com