Gold has pulled back below $4,000 after a massive rally

After months of an unstoppable monster rally, gold has finally run out of ￰0￱ metal that tore through records to $4,400 an ounce is now slipping back below the $4,000 level, forcing traders to face what charts are screaming; this is a consolidation, not a ￰1￱ to Katie Stockton, both bullion and mining stocks are entering a long pause that could stretch well into 2026 before another real breakout. Scary? Well over the past week, gold breach what analysts call its “psychological” floor, so the daily MACD indicator has turned into a firm sell signal, showing that short-term momentum has flipped to the ￰2￱ the chart below:-), the untitled king of gold mining, slid below its 50-day moving average on Monday for the first time in 11 months, which is a bearish ￰3￱ next real line of defense sits around $75, aligned with the 38.2% Fibonacci retracement ￰4￱ that, NEM’s next support sits near the 200-day average at $60.

The 20-day moving average has also rolled over, meaning short-term strength has gone weak after investors took billions in much deserved profits.). At the same Bloomberg Business Summit in Kuala Lumpur, Benjamin Diokno, a Monetary Board member and former BSP governor, said the country’s gold reserves are “already excessive.” Gold makes up about 13% of the BSP’s $109 billion in gross reserves, far above regional ￰5￱ said the ideal range should be between 8% and 12%, adding that the central bank had bought much of its bullion around $2,000 an ￰6￱ asked, “Shouldn’t you sell already? What will happen if the price goes down?” The remark exposed an internal divide inside the BSP over whether to take profit or keep ￰7￱ Remolona, the current BSP governor, made it clear earlier this year that the bank doesn’t speculate on gold price swings.

“It’s risky and the average return is negative,” Remolona said in March, explaining that the metal serves mainly as a hedge inside the country’s ￰8￱ approach hasn’t always been ￰9￱ 2024, the BSP sold some of its gold right before prices surged, prompting public backlash over missed ￰10￱ bank defended the sale as part of its “active management” strategy, saying it doesn’t chase price ￰11￱ then, Diokno said the bank has diversified where its reserves are kept, a small portion is now stored in France, while most remain in ￰12￱ central bank is also reconsidering its currency ￰13￱ most of its holdings are still in U. S. dollars, Diokno said officials are looking at expanding into euros, and possibly reviving older positions in Japanese yen and Australian ￰14￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.