Gold’s Nine-Week Rally Ends Amid Dollar Strength — But the Bull Market Isn’t Over

TradingKey - After nine consecutive weeks of gains, gold prices may be ending their strong rally this week, pressured by easing trade tensions and investor profit-taking.

Gold hit a record high of $4,380 per ounce earlier this week before retreating. The pullback is largely attributed to profit realization after a steep run-up.

As of Friday, October 24, international gold prices fell nearly 2% on the day, trading at $4,063.02/oz. Year-to-date, gold is still up 55% — outperforming both the Nasdaq Index and Bitcoin, making it one of the best-performing major assets in 2025.

On the same day, the U.S. Dollar Index (DXY) rebounded above 99, adding downward pressure on dollar-denominated gold.

Swissquote Bank analysts said that the rebound over the past few weeks was too fast. Investors now expect U.S.-China trade tensions to ease.They added that those with large gains are taking profits or at least reducing their exposure to gold.

Trump-Xi Summit in Sight

The White House confirmed on Thursday that President Donald Trump will meet with Chinese President Xi Jinping on October 30 during a summit in South Korea. This will mark Trump’s first trip to Asia since returning to office and the first direct meeting between the two leaders during Trump’s second term.

The meeting comes amid renewed tensions over rare earth export controls and shipping fees, and Trump hopes to reach agreements with China on all key issues during this high-profile bilateral summit.

However, experts believe the summit is unlikely to mark a turning point in relations, and China has not yet formally confirmed the face-to-face meeting.

Bull Market Still Intact Despite Pullback

Although gold has pulled back nearly 5% this week, market participants are not sounding the alarm on the end of the bull market.

Support remains strong from:

• The Fed’s gradual rate-cutting path
• Ongoing interest in the “debasement trade” (hedging against currency depreciation)
• Persistent structural demand

Goldman Sachs recently reaffirmed its bullish stance, stating that the recent sell-off stemmed from position unwinding in speculative portfolios and spillover effects from silver markets — not from deteriorating fundamentals.

The bank emphasized that structural buying continues from central banks, high-net-worth individuals and long-term institutional asset allocators.

Goldman projects that gold could reach $4,900/oz by end-2026, with upside risks if institutional investment appetite continues to grow.