Gold Snapshot (GBP)
Current price: £3,435 per oz
Price this time last week: £3,715 per oz
High of the week: £4,046 per oz
Percentage change since Monday morning last week: -7.54%
Rax2 Assets – Weekly Market Update | Gold Does the Unthinkable
Last week, gold didn’t just move higher — it redefined expectations.
We saw prices surge beyond £4,000 per ounce, while USD pricing pushed above $5,500. What makes this moment extraordinary isn’t just the number… It’s the speed.
Gold has effectively achieved a full-year forecast in the opening weeks of the year.
That alone tells you one thing loud and clear:
👉 This is not a normal market.
Forecasts Broken — And What That Really Means
At the start of the year, targets around £4,000+ and $5,500 USD were considered optimistic.
Gold didn’t wait.
It ran straight through them.
When an asset reaches consensus forecasts this early, markets do what they always do next:
They pause, breathe, and correct.
The Correction: Healthy, Expected, Necessary
After an explosive upside, we’ve seen a short-term market correction. This isn’t weakness — it’s structure.
Corrections are driven by:
- Profit-taking after sharp gains
- Over-exuberant traders pushing prices beyond natural levels
- Short-term players exiting positions
This is how strong trends reset, not how they end.
Importantly, the underlying drivers of gold have not changed.
Where the Trend Still Points
Despite short-term pullbacks, the medium-to-long-term outlook remains firmly bullish.
Current projections still point toward:
- £4,000-£4,400 per ounce by year-end
- $5,500–$6,000 USD range
That tells us something critical:
📌 This correction is a pause in a climb — not a reversal.
The Key Drivers Behind Gold’s Surge Remain Unchanged
While short-term price action may fluctuate, the fundamental reasons behind gold’s strength are firmly intact.
Gold continues to be supported by:
- The US debt crisis and unsustainable government borrowing
- A weakening US dollar, eroding purchasing power
- Falling interest rates, reducing the appeal of cash and bonds
- Geopolitical uncertainty across multiple regions
- Growing tension between the Federal Reserve and the Trump administration is undermining confidence in monetary policy
- A global debt crisis, not confined to any single economy
- Tax efficiency, particularly for physical gold held correctly
- Gold’s historic role in wealth preservation during periods of systemic risk
These are not short-term headlines — they are structural pressures. And until they change, gold remains strategically positioned as one of the most compelling assets in the market today.
Why We Always View Gold as Medium to Long Term
At Rax2 Assets, we don’t chase noise — we position for outcomes.
Gold isn’t a trade.
It’s a strategic asset.
By taking a medium-to-long-term view, you:
- Strip out the risk of short-term volatility
- Avoid emotional decision-making
- Stay aligned with the macro trend, not daily headlines
Short-term movements shake out weak hands.
Long-term holders stay aligned with real value.
Why Short-Term Corrections Favour Smart Buyers
For long-term investors, market corrections are not a threat — they’re an advantage.
When prices temporarily pull back after rapid gains, it creates:
- Stronger entry points at lower risk levels
- More ounces for your money compared to buying at peak exuberance
- The ability to position calmly, not emotionally
Corrections shake out short-term traders, but they reward disciplined buyers who understand the bigger picture.
Instead of chasing price, clients can:
- Enter the market during periods of consolidation
- Reduce exposure to immediate volatility
- Align purchases with the dominant long-term trend, not short-term hype
This is exactly where physical gold excels. You’re not trading candles — you’re accumulating value.
