The record streak of gold could be facing a significant reversal, according to economist Henrik Zeberg, who warned that the metal is on the brink of a major drop.
His latest analysis holds that the momentum behind the rise of gold in 2025 is rapidly weakening and technical indicators now point to a considerable correction ahead, he said in a post on X on December 6.
Zeberg warned that gold "is about to fall off the cliff in a very big way," noting that the narrative of rising inflation expectations can no longer sustain prices at the elevated levels they are currently at.
The warning comes at a time when gold is trading near historic highs above $4,200 an ounce, driven earlier this year by aggressive investment flows, central bank purchases, and expectations of rate cuts by the Federal Reserve.
According to Zeberg's analysis, price action is developing within a large and exhausted consolidation zone, and gold repeatedly fails to break above its upper resistance band.
More concerning is the emergence of a bearish divergence. In this line, while gold's recent highs have risen slightly, the RSI has shown a downward trend, indicating a weakening of the underlying momentum.
The setup is further pressured by an upward trend line that is now at risk; a break below it would confirm a structural collapse and potentially open the door to a deeper decline.
Overall, Zeberg's technical reading sharply contrasts with the optimism that defined much of 2025. Global demand reached record levels, and investment and central bank purchases helped drive the market to over 50 historic highs throughout the year. $BTC
