The record-breaking gold price run has hit a rough patch.
A week ago, the yellow metal notched fresh all-time highs just north of US$4,381 per ounce.
The following day, Wednesday, bullion tumbled by 6.6%, marking its biggest single-day decline in 10 years.
Earlier this morning, the gold price was down again overnight, trading for US$3,979.54 per ounce. The yellow metal has since recovered some of those losses, but remains just below the psychologically important US$4,000 level, currently trading for US$3,999.65 per ounce.
Still, it's worth remembering that despite this retracement, gold remains up more than 52% in 2025.
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What's happening with ASX gold stocks?
As you'd expect, ASX gold stocks – which have been among the top performers this year amid the surging gold price – are taking a drubbing this week.
During the Tuesday lunch hour, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 5.1% for the day. That sees the All Ords Gold Index down 15% since its all-time closing high on 17 October. The All Ords Gold Index remains up 78.5% year to date.
Turning to a few of the top S&P/ASX 200 Index (ASX: XJO) gold miners:
- Northern Star Resources Ltd (ASX: NST) shares are down 4.1% today and up 49.4% in 2025
- Newmont Corp (ASX: NEM) shares are down 3.6% today and up 97.1% in 2025
- Evolution Mining Ltd (ASX: EVN) shares are down 3.4% today and up 112.3% in 2025
Where to now for the gold price?
The record-breaking run for gold has been supported by a range of factors this year.
These include ongoing strong demand from central banks; falling interest rates in many top economies; and surging demand from retail and institutional investors seeking gold's haven status amid rising geopolitical turmoil.
Though the gold price has come under renewed selling pressure this week amid news of a possible de-escalation in the US-China trade war, those same factors look likely to remain in play in the year ahead.
Commenting on the outlook for gold, Nicky Shiels, head of research at precious metals refiner MKS Pamp, said (quoted by Bloomberg):
Bull markets always need a healthy correction to weed out froth and ensure the cycle has duration. Prices should consolidate and revert to a more measured bullish trajectory.
Gregory Shearer at JPMorgan Chase & Co also maintains a bullish outlook on the gold price.
According to Shearer:
We expect de-risking and profit taking by investors to be met by dip buying from other segments of demand including central banks and other physical buyers, ultimately keeping reversals relatively shallow.
Stay tuned!
