Gold’s Pause: A Temporary Lull Before Further Gains?

In times of market turbulence, gold has demonstrated remarkable resilience. However, its recent pullback is prompting investors to question the precious metal's near-term trajectory. While gold significantly outperformed major equity indices in 2025, the current consolidation phase may represent a critical inflection point. Is this the calm before a renewed upward surge, or did the peak at $43.66 mark a temporary high?

Despite short-term pressures, the foundational drivers for gold's strength appear intact. Persistent geopolitical uncertainties, continuous bullion acquisitions by central banks worldwide, and ongoing inflation hedging demands continue to bolster the long-term bullish case.

The asset's impressive performance metrics reinforce this positive outlook. Since the beginning of the year, the fund has gained over 53 percent, with twelve-month returns exceeding 52 percent. The substantial 19 percent premium to its 200-day moving average further underscores the sustainability of this upward momentum.

Should investors sell immediately? Or is it worth buying iShares® Gold Trust Micro?

Monetary Policy Creates Temporary Headwinds

The recent weakness in gold prices stems from identifiable sources: moderated expectations for interest rate cuts by the U.S. Federal Reserve, combined with stronger-than-anticipated U.S. employment data, prompted a market correction. These factors created temporary downward pressure within a broader constructive environment.

Direct Physical Gold Exposure

For investors seeking pure exposure to gold prices without the complexities of financial derivatives, the iShares Gold Trust Micro (IAUM) provides direct access to physical bullion. The trust's portfolio consists entirely of gold bars secured in high-security vaults, ensuring maximum concentration on the commodity's price movements. This structure means investors participate directly in gold's appreciation while being fully exposed to any price declines.

The critical question remains: Can gold extend its impressive rally, or are we entering an extended period of consolidation? The answer likely hinges on the evolving landscape of global interest rate policies and geopolitical tensions.