Gold holds fifth high consolidation, signalling higher long-term trading range
Updated
Updated · Investing.com · May 8
Gold holds fifth high consolidation, signalling higher long-term trading range
10 articles · Updated · Investing.com · May 8
The metal is trading roughly between $4,400 and $5,400 after an 18.6% drop from January’s $5,394 peak, near historical post-bull drawdown averages.
The report says war-related central-bank selling, including Turkey cutting 9.5% of reserves, drove March losses, but prices have since stabilised near former resistance turned support.
It argues gold is revaluing higher as fiat-currency supply grows far faster than mined output and investor allocations remain low, potentially supporting miners and further gains if inflation and stock weakness persist.
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Gold reached record highs in January 2026, but has since entered a period of consolidation as analysts expect prices to remain range-bound in the near term. This pause is linked to the recovery of the dollar index and is not seen as irrational, since gold’s price action is mainly driven by fundamental supply and demand forces. Investors are now focusing on these fundamentals for the rest of 2026. Despite recent volatility, strong central bank activity continues to provide structural support for gold, highlighting its enduring appeal and suggesting that the current phase is a pause within a broader bull market.