Here’s Why Gold Might Take a Big Hit Soon

TradingKey - Gold prices hit another record high on Monday, reaching 3,146 at one point as uncertainty of Trump’s tariffs continued to rise. However, analysts warn that a pullback may be on the way.

Gold prices surged nearly 20% in the first quarter of 2025, marking the largest quarterly gain since 1975, and now indicate that the market is overbought. The relative strength index (RSI) on the daily chart has remained above 70 for three consecutive days, indicating that markets are overly stretched.

Source: TradingView, FXstreet

There's a lot of profit piled up in gold. The uncertainty about tariffs could push some investors to cash out.  If the market shows signs that tariffs might negatively affect gold prices, investors might rush to sell their gold to lock in profits."

Fawad Razaqzada, a market analyst at City Index and FOREX.com, pointed out that gold prices are now well above 3,000 announce,prompting some investors to take profits.For Example,at the end February, international gold prices fell over100 from a high of 2,956 to 2,850.