Is the Gold Correction Setting the Stage for a $6,000 Breakout?
Gold’s historic rally hits turbulence as traders cash in and optimism over U.S.–China trade talks cools the world’s favorite safe-haven asset.
Gold’s unstoppable rally finally hit turbulence this week as the world’s most coveted safe-haven asset tumbled to a three-week low, sliding further away from the psychological $4,000 mark. The decline comes amid renewed optimism surrounding a potential U.S.–China trade deal and profit-taking after one of gold’s strongest bull runs in over four decades.
A Relentless Pullback
By Tuesday afternoon, gold futures (GC=F) were down more than 1%, hovering near $3,970 per troy ounce, while spot gold traded around $3,930. The drop extends a steep sell-off that began last week with gold’s sharpest one-day decline in more than ten years. “It has been a feature of this correction so far that, except for a brief pause last Thursday, the sell-off has been relentless,” said David Morrison, senior market analyst at Trade Nation.
Morrison noted that while gold is no longer technically overbought, investor fatigue and shifting sentiment have weighed on the metal. “Despite this, gold will find support at some stage, and it’s quite likely that there will be a sharp reversal when it does,” he added.

