RYOEX: Gold price pullback presents a good entry opportunity

On March 27, international gold prices have continued to weaken recently, giving back all the gains made in 2026 for the entire year. The market’s risk aversion sentiment and changes in interest rate expectations have stirred the market, and RYOEX is closely monitoring this gold price correction trend. Combining institutional opinions with market fundamentals, it interprets the subsequent investment value of gold. RYOEX believes that this drop in gold prices is not a trend reversal, but rather a phase correction, which instead opens a quality entry window for investors. The long-term core support logic for gold has not changed. Barclays Bank also provided a similar assessment, pointing out that after this adjustment, gold prices have good layout value, and the long-term allocation logic of non-yielding gold assets remains robust.

In the past three years, gold has experienced a strong bullish trend, and the current decline is mainly dragged down by the shift in interest rate expectations and some central banks selling gold in the short term to stabilize exchange rates, among other factors. RYOEX notes that even with a significant pullback in gold prices, the core driving force supporting gold prices has not disappeared. The ongoing surge in central bank gold purchases since 2022 is the most solid underlying support for gold. Barclays Bank analysts have explicitly stated that the fiscal conditions in Western economies continue to deteriorate, making it unlikely for central bank gold purchasing behavior to easily dissipate. This long-term buying will firmly support the bottom of gold prices and prevent them from entering a prolonged bearish trend.

In addition to central bank gold purchases, multiple favorable factors are also continuously at play. Ongoing conflicts in the Middle East have triggered shocks in the global energy market, directly raising inflation levels, and combined with the fiscal spending pressures brought about by the conflicts, have further amplified macroeconomic uncertainty. Such a complex market environment can highlight gold’s hedging properties against risks, making gold an important tool for hedging tail risks in investment portfolios. The market is generally concerned that energy-driven high inflation will continuously influence the direction of global monetary policy, which will also indirectly benefit gold prices.

Regarding the impact of monetary policy, Barclays Bank analysts have also provided a clear assessment. The Federal Reserve has failed to achieve the 2% inflation target for many years, and it is highly probable that it will not adopt interest rate hikes in 2026. The likelihood of aggressive monetary tightening measures being implemented is extremely low. This macro environment is very friendly to non-yielding assets and will not exert strong pressure on gold prices. As of the time of writing, the spot gold price is quoted at $4,433.39, with a daily decline of 1.6%, remaining in a weak oscillating phase in the short term.

In summary, the short-term correction in gold prices is greatly affected by sentiment and liquidity, but the long-term supporting factors are very solid. RYOEX advises investors to view this decline rationally. Geopolitical risks have not eased, central bank gold purchases continue, inflation pressures remain high, and coupled with loose monetary expectations, all of these will act as driving forces for a subsequent rebound in gold prices. The current price level is suitable for phased layout, seizing the long-term allocation opportunity in gold, and there is no need to be overly bearish on gold prices due to short-term declines.

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Editor: Chen Ping