Gold prices are expected to see further correction before they rally again and revisit the $4,500 mark next year, analysts said.

The precious metal touched $4,500 last month but slipped due to profit-taking. Over the weekend, it closed at $4,080.78 per ounce, down 2.62 per cent. In the UAE, 24K and 22K were trading at Dh492.25 and Dh455.5 per gram, respectively.

“My expectation is that gold will go down to $3,700 to $3,800, then it will recover and see the bull run. It could revisit $4,500 in the near term," said Amir Boucetta, marketing team leader at CPT.

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“We're still in the corrective wave, and the price will continue to go down during this phase. I believe it is a healthy correction, so people should not panic to buy and sell, but look at fundamentals,” added Boucetta.

He noted that if there is additional pressure on gold prices, it could even touch $4,900.

Komalpreet Kaur, senior partner manager at XtremeMarkets, said the yellow metal dropped recently, but it is recovering slowly.

“Gold is going up again due to fundamentals because the trend is bullish. I see gold rising to around $5,000 in 2026-27 due to multiple factors; due to the US tariffs, China and other countries building their gold reserves, the US economy, and others,” she added.

Alex Kuptsikevich, chief market analyst at FxPro, said the weakness of the US dollar and rumours of the US Federal Reserve resuming asset purchases have been catalysts for gold's rise since the beginning of last week, but Thursday and Friday clearly showed that this is no longer a one-way street.

“In 2011, gold reached a record high thanks to quantitative easing programmes. Since the beginning of 2025, the precious metal has risen 60 per cent and is on track for its second-best annual gain in history after 1979. Buying on dips and key central bank rate cuts this year are forms of monetary stimulus. They lead to falling Treasury yields and a weaker US dollar. This environment is favourable for gold,” added Kuptsikevich.

On the other hand, there is a growing impression that the markets have had their fill of gold and other precious metals.

“Since the end of last month, gold has been selling off heavily after its rise, which appears to be an attempt by bears to demonstrate that they have broken the bulls' back. Gold, like other risky assets, was undermined at the end of the week by a sharp decline in the chances of a Fed rate cut in December. If Fed members really nudge the market in this direction, the dollar is doomed to rise and gold to fall.

“However, we still see higher risks that the data coming out of the US will show a sharp deterioration in the economic landscape. In this case, we should expect the dollar to rise and a flight from risk, but in such cases, gold soars in the early stages, only to fall off a cliff later on,” concluded Kuptsikevich.

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