Gold’s rally is showing little sign of slowing as global markets head into 2026 with investors increasingly looking for refuge in traditional safe-haven assets amid geopolitical uncertainty. According to Gracy Chen the CEO of crypto exchange Bitget says gold continues to act as “the world’s ultimate insurance policy,” as demand remains firm while broader financial markets adjust to shifting macroeconomic risks. “Technically, the market is still in expansion mode,” Chen said pointing to Fibonacci extensi ...

Core Viewpoint - Gold prices have stabilized after a three-day decline, with expectations of a Federal Reserve interest rate cut driving dip-buyers back into the market [1][3]. Group 1: Market Performance - Gold held steady near $3,950 an ounce after a loss of over 4% in the previous three sessions, with a widely anticipated 25-basis-point interest rate cut expected from the Federal Reserve [1]. - Following a significant rally that peaked above $4,380 an ounce, gold has retreated sharply, attributed to technical indicators suggesting the price increase was unsustainable and reduced demand for safe-haven assets amid improving US-China trade relations [2][3]. - Despite the recent pullback, gold prices are still up approximately 50% year-to-date, supported by central bank purchases and a trend of investors seeking alternatives to sovereign debt and currencies due to budget deficits [3]. Group 2: Investor Behavior - The surge in gold prices attracted both institutional and retail investors to gold-backed exchange-traded funds (ETFs), although recent outflows have impacted this support, with a net withdrawal of $1 billion from State Street's SPDR Gold Shares, marking the largest outflow since April [4]. - Total investor holdings in gold ETFs have seen their most significant decline in six months, indicating a shift in market sentiment [4]. Group 3: Market Outlook - Analysts suggest that gold's role as a hedge against fiscal and policy uncertainty remains strong, although the recent exuberance has transitioned to a phase of consolidation [5]. - A range of $3,920 to $4,020 an ounce is seen as critical for potential base-building before another upward movement, with concerns that failing to maintain this range could lead to further sell-offs [5]. - A survey at the London Bullion Market Association's conference indicated a bullish outlook, with attendees projecting gold prices could reach nearly $5,000 an ounce within a year [5].