Dubai: Gold prices vary slightly in 'cooling' phase after record rally

Gold prices continued with little fluctuations on Thursday morning in what analysts are calling a “cooling phase” after an extraordinary rally. 

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However, he added that the pause “looks like a breather” but not a breakdown. “Seasonal softness, temporary Chinese policy noise, and a firmer dollar explain the short-term retreat, but none change the longer-term narrative,” he said. “Once this corrective phase runs its course, the same forces that fuelled this year’s rally — debt, inflation, and diversification demand — are likely to reassert themselves, making the next meaningful leg higher a 2026 story.”

He also added that the correction was healthy. “From a technical perspective, it been relatively moderate considering two consecutive weekly losses followed a nine-week surge that lifted prices more than 27 percent,” he said. “In our opinion this correction, whatever painful to recent buyers, has been a healthy development suggesting the market is releasing pressure rather than reversing trend. Support has been building near $3,835 to $3,878, an area that aligns with the 50 per cent Fibonacci retracement of latest run up since August as well as the 50-day moving average.  A deeper slide cannot be ruled out if equity market risk appetite stay buoyant and the dollar continues to firm.”

Written by

Nasreen Abdulla

Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.