Roukaya Ibrahim, chief commodities strategist at BCA Research, notes that gold’s deviation from its 200-day moving average mirrors patterns observed in late July. This stretched technical position suggests the metal is ripe for a rebound, yet the broader environment remains hostile. Stubborn inflation and a resilient U.S. dollar continue to undermine the non-yielding asset, leaving little room for a sustained upward breakout before the year concludes.

Despite the recent price drop, Ibrahim stops short of calling it a structural failure. She characterizes the recent selling as a potential liquidity-driven event that disconnected gold from its traditional correlations with Treasury yields. Looking ahead, institutional support from central banks, particularly potential reserve accumulation by China, acts as a long-term buffer. However, a meaningful rally likely requires a shift in private investment demand—driven by rising anxiety over U.S. fiscal sustainability—or a moderation in inflation that would allow the Federal Reserve to pivot away from its current restrictive monetary stance.