Gold price analysis: Corrective pullback creates an apt opportunity for buyers

After its stellar performance in 2025, the gold price has remained on an uptrend; rallying by about 15% since the start of the year. Indeed, it extended its previous gains to hit a fresh record high earlier on Thursday at $5,616 an ounce. 

Nonetheless, a healthy correction has begun. At the time of writing, it had eased out of the overbought territory to trade at $5,032. While the corrective pullback may continue a while longer, the precious metal appears to have more room to run.

Gold price

Gold price continues on its uptrend as the heightened safe-haven demand and increased investment activity offers steady support. As highlighted by the World Gold Council, the total gold demand exceeded 5,000 tonnes in 2025 for the first time. As part of the underlying fundamentals, the total gold ETF holdings rose by 801 tonnes. Notably, this is the second-highest surge on record. 

Notably, its strong fundamentals have bolstered gold price higher in 2026. As the year’s first month comes to an end, the precious metal is already up by 15%. Having refreshed its all-time high in several sessions, it is on track to record its strongest monthly performance in decades. 

Even with the current corrective pullback, the bullish trend remains solid. In fact, gold price appears to be consolidating above the psychologically crucial zone of $5,000 as the bulls remain in control.

Amid the persistent geopolitical tensions, economic uncertainties, and a weaker US dollar, the correction offers an opportunity for more buyers to enter the market at a lower price. Indeed, these driving factors, and the subsequent surge in investment demand, have led UBS to revise its gold price 2026 forecast to the upside. 

The investment bank has raised its gold price target from $5000 to $6,200 an ounce for the months of March, June, and September. Towards the end of the year, the price may ease to $5,900 as the end of the US midterm elections lowers the safe-haven demand. Besides, UBS expects a more hawkish Fed to yield further losses.

GLD ETF technical analysis

The SPDR Gold Shares ETF, which is one of the leading gold ETFs tracking the performance of the bullion, has recorded a similar stellar performance in recent months. On Thursday, it refreshed its all-time high; rallying past the psychologically crucial zone of $500 for the first time before pulling back. At the time of writing, the GLD gold ETF was trading at $495; up by 25% year-to-date. 

A look at its daily chart indicates that a healthy correction has begun. At an RSI of 88, the ETF ended its trading session deep in the overbought territory. Similarly, the gold bullion is now at an RSI of 69 after surging to 90 earlier in the week. Seeing that the GLD gold ETF moves in tandem with the bullion, a corrective pullback is underway. 

In the immediate term, the bulls will likely strive to defend the support zone fo $450. A further pullback may activate the previous resistance-turned-support level of $428, even as the bulls remain in control.