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

After months of an unstoppable monster rally, gold has finally run out of breath.

The 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 collapse.

According 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 downside. Observe the chart below:-

If gold’s price falls through $3,927/oz, traders are naturally eyeing the 50-day moving average, which is near $3,766 and inching higher.

The charts also show that weekly stochastics have rolled over, and these little red arrows on past charts that pointed to similar declines lasted for weeks, sometimes months. The recent highs near $4,358 mark the upper edge of this new trading range, according to Katie.

And like we said, the story is the same for miners. Newmont Corp. (NEM), 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 signal. Its next real line of defense sits around $75, aligned with the 38.2% Fibonacci retracement level.

Below 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.

But this correction is being read as a counter-trend move on Wall Street rather than the start of a meltdown. Because after surging by more than 55% this year, Katie thinks the metal was just deeply overbought, and a reset like this was purely inevitable.

Philippine central bank weighs selling its massive gold reserves

Away from the charts, the debate over gold is heating up at the Bangko Sentral ng Pilipinas (BSP).

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 peers. Diokno 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 ounce. He 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 accumulating. Eli 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 portfolio.

That approach hasn’t always been popular. In 2024, the BSP sold some of its gold right before prices surged, prompting public backlash over missed gains.

The bank defended the sale as part of its “active management” strategy, saying it doesn’t chase price spikes. Since then, Diokno said the bank has diversified where its reserves are kept, a small portion is now stored in France, while most remain in London.

The central bank is also reconsidering its currency mix. While 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 dollars.

Get up to $30,050 in trading rewards when you join Bybit today