“Buying The Dip” Supports Gold

Given gold’s meteoric rise in 2025, from $2,600 to over $4,300 an ounce, it’s understandable that the rally might pause. But whenever the price of gold has pulled back to just below the $4,000 level in trading at New York’s COMEX futures exchange, buyers come rushing in. This “buy the dip” mentality has been supporting gold through the autumn of 2025.

Gold dipped as low as $3,957 an ounce in intraday trading on October 9, and $3,961 the following day. From there, it rallied to a new all-time high just ten days later.

As concern grew that the Federal Reserve might refrain from continuing to cut interest rates, gold dropped back below $4,000 in late October. Yet on every trading day from October 27 through November 7—ten consecutive trading days—whenever gold dipped under $4,000 it rallied during the day back above the milestone, thus establishing a strong technical support level. In London, where the cash price for gold is set twice a day through an electronic auction for banks, $3,950 has been a floor for the precious metal.

Retail investors around the globe, especially in Asia, have been following the same pattern as professional gold traders, rushing in to buy gold when prices have dipped.

JP Morgan Chase, a key player in the gold market says central bankers are likely to also do some bargain hunting. “We expect de-risking and profit taking by investors to be met by dip buying from other segments of demand including central banks and other physical buyers, ultimately keeping reversals relatively shallow,” wrote Gregory Shearer, JP Morgan Chase’s Head of Base and Precious Metals Research.