Gold’s Recent Volatility: A Correction After A Stellar Rally

The spot price of gold has experienced significant volatility in the past few weeks, moving sharply away from its recent multi-year or even all-time high. This movement is being widely viewed by analysts not as a bubble bursting, but as a necessary and overdue corrective phase following an explosive rally. The initial ascent that pushed the yellow metal to its peak was primarily fueled by a potent mix of global risk factors, including escalating geopolitical tensions, mounting economic uncertainties, and a prolonged trend of significant gold accumulation by central banks. This period of rapid gains naturally led to overbought conditions and set the stage for a period of profit-taking by short-term investors. (more…)