Gold correction does not negate the market’s long-term potential

The gold market came under pressure at the end of the week: quotations fell below the $4,600 per ounce mark, while April COMEX futures closed near $4,574.90. Pressure on the metal intensified due to firmer interest rate expectations, a stronger U.S. dollar, and rising yields on U.S. Treasury bonds.

At the same time, the current decline appears to be more of a correction after strong growth than a reversal of the broader long-term trend. According to the World Gold Council, total gold demand in 2025 exceeded 5,000 tonnes for the first time, while the price reached new all-time highs 53 times during the year. RBC also noted that after rising by more than 50–60%, the market naturally entered a correction phase, and such movements are not unusual for gold.

Additional arguments in favor of a more balanced assessment also come from analysts’ comments. Yardeni Research maintains a bullish view on gold, emphasizing that the recent weakness may be linked to profit-taking after a rapid rally. The key supportive factors still include central bank demand, investor interest in China, the high U.S. public debt burden, inflation risks, and persistent geopolitical tensions.

Thus, the current pullback in gold does not yet appear to be a signal for long-term panic. Rather, the market seems to be undergoing a reassessment phase after rapid growth, while still retaining fundamental grounds for stabilization and a possible return to an upward trajectory. This conclusion is based on the combined assessment of current market data and analysts’ estimates.