After Gold reached a new ATH at $4,552/ounce last week, this week gold prices have come under strong profit-taking pressure from investors, pushing prices down to the $43xx/ounce range.
The year-end period is typically when investors cash out the most to prepare for the New Year holidays, so gold prices often tend to decline during this time.
However, the factors supporting higher gold prices after this period remain intact. The U.S. dollar has yet to show a strong recovery, geopolitical tensions have not eased, and central banks continue to aggressively accumulate gold.
Therefore, the current decline in gold prices is simply the result of profit-taking. Once the holiday season passes, a very strong bull run is likely to be triggered, allowing gold to quickly regain upward momentum for the medium- to long-term trend.
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