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Gold's recent selloff is forced liquidity management amid energy shocks, signaling a long-term bull market return.

Market News
25 May 2026
Kitco
View Source
Bullish
pluang ai news

Gold's recent price drop is driven by forced sovereign liquidity needs during the Iran war and energy crisis, not a loss of faith in gold itself. Rising oil prices and inflation fears pushed central banks to sell gold reserves temporarily to stabilize their economies. However, this phase is expected to give way to slower growth and dovish central bank policies, which historically benefit gold. The market is undergoing a structural shift where gold acts as monetary insurance amid geopolitical tensions, underinvestment in physical commodities, and a fragmented global economy, suggesting a strong long-term bull market ahead.

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