Gold Rally Loses Steam as Technical Signals Point to Pullback

Gold may be running out of steam after its recent climb past $3,000, with technical indicators flashing signs of exhaustion.

Despite bullish sentiment driven by global uncertainty, analysts are warning that the rally could soon stall—or even reverse.

The metal’s monthly Relative Strength Index (RSI) has hit extreme territory, reaching its highest point since before the 2008 financial crash. Historically, such elevated RSI levels have preceded major corrections, raising the risk that gold’s strong year-to-date performance may not hold.

Market anxiety over trade tensions and recession risks has fueled demand for safe-haven assets, but gold is already retreating slightly—down 1% to around $3,283. While it still sits comfortably above key moving averages, the trend could shift quickly.

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Veteran trader Peter Brandt has pointed to a bearish technical formation—a descending triangle with flattening support near $3,300. He notes similarities to the 2013 setup that led to a prolonged downtrend, suggesting a break below $3,200 is on the table unless bulls regain control.

Without a decisive move above $3,350, gold may struggle to maintain momentum, casting doubt on whether the $4,000 milestone many hoped for in 2025 is truly within reach.

Alexander Stefanov