After three consecutive years of strong double-digit returns, culminating in 2025’s blockbuster 65 percent gain, gold was due for a rest. Technical analysts refer to this as a consolidation of gains. At mid-year, the gold price appeared to have accomplished just that, establishing support near $4,000 an ounce.
As buyers step in to make purchases at levels that offer a deep discount from the heights of January, there is a growing chorus of renewed enthusiasm for the precious metal. “These are signals that gold has potential to resume its long-term rally,” states Barron’s Magazine.
“We continue to respect gold’s longer-term uptrend and are monitoring for confirmation that support is holding,” writes technical analyst Adam Turnquist of LPL Financial.
Among those providing buying support are central banks, which have continued adding gold to their financial reserves, in some cases substituting gold for U.S. dollar-denominated assets.
“As we live in an environment of structurally higher inflation, one needs to hold real assets. Precious metals are clearly part of this. [And] as the fog of war lifts, investors will come back into the market for gold and silver,” Philippe Gijsels, chief strategy officer at BNP Paribas Fortis, told CNBC.
The consolidation in the price of gold is, “not the end, but merely a pause in what will live up to be the strongest and longest bull market in gold and silver in history,” argued Gijsels. “We expect the secular bull market in gold and silver to resume and the metals to reach new all-time highs in the not-too-distant future, potentially this year.”
Still, it is worth noting that support levels offer no guarantee of a price floor. Far more important than short-term support, is investor confidence in the enduring value of the precious metal, which, over time, translates into gold serving as a highly secure store of value.
