Gold prices are pulling back from their record high of $5,500, triggering a debate among market participants about the sustainability of the long-term bull market.
The recent decline marks a sharp reversal after the metal had climbed to unprecedented levels, raising questions about whether the rally has lost momentum or is merely undergoing a technical correction.
Economist and gold specialist Alasdair Macleod argues that the current pullback does not signal the end of the bull market.
According to reports from Welt, Macleod maintains that true financial stability will only return when currencies are once again backed by gold, suggesting that the current fiat system remains fundamentally unstable.
His view contrasts with short-term traders who may be interpreting the price drop as a trend reversal.
The retreat comes after gold prices failed to hold gains earlier in the week, despite a softer-than-expected US producer price index (PPI) report that had reinforced expectations for easing inflationary pressures in the United States.