The post Top economist warns gold ‘about to fall over the cliff in a very big way’ appeared on BitcoinEthereumNews.com. Gold’s record-setting run may be facing a sharp reversal, according to economist Henrik Zeberg, who warned the metal is on the verge of a major downturn. His latest analysis argues that the momentum behind gold’s 2025 surge is weakening rapidly, with technical indicators now pointing to a sizable correction ahead, he said in an X post on December 6. Zeberg warned that gold is “about to fall over the cliff in a very big way,” noting that the narrative of rising inflation expectations can no longer sustain prices at current elevated levels. The warning comes as gold trades near historic highs above $4,200 per ounce, driven earlier this year by aggressive investment flows, central bank buying, and expectations of Federal Reserve rate cuts. According to Zeberg’s analysis, price action is unfolding inside a large, exhausted consolidation zone, with gold repeatedly failing 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 edged higher, the RSI has been trending lower, signaling weakening momentum beneath the surface. The setup is further pressured by an ascending trendline now at risk; a break below it would confirm a structural breakdown and potentially open the door to a deeper decline. Contrasting gold rally  Overall, Zeberg’s technical read contrasts sharply with the optimism that defined much of 2025. Global demand reached record levels, with investment and central bank buying helping push the market to more than 50 all-time highs throughout the year. Analysts had projected further gains in 2026 if macroeconomic risks intensified, but that outlook is now colliding with a different interpretation of market dynamics, namely, that gold’s steep ascent has left it vulnerable to a sharp unwinding should investors rotate out of safe-haven trades. Notably, gold ended the last session… The post Top economist warns gold ‘about to fall over the cliff in a very big way’ appeared on BitcoinEthereumNews.com. Gold’s record-setting run may be facing a sharp reversal, according to economist Henrik Zeberg, who warned the metal is on the verge of a major downturn. His latest analysis argues that the momentum behind gold’s 2025 surge is weakening rapidly, with technical indicators now pointing to a sizable correction ahead, he said in an X post on December 6. Zeberg warned that gold is “about to fall over the cliff in a very big way,” noting that the narrative of rising inflation expectations can no longer sustain prices at current elevated levels. The warning comes as gold trades near historic highs above $4,200 per ounce, driven earlier this year by aggressive investment flows, central bank buying, and expectations of Federal Reserve rate cuts. According to Zeberg’s analysis, price action is unfolding inside a large, exhausted consolidation zone, with gold repeatedly failing 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 edged higher, the RSI has been trending lower, signaling weakening momentum beneath the surface. The setup is further pressured by an ascending trendline now at risk; a break below it would confirm a structural breakdown and potentially open the door to a deeper decline. Contrasting gold rally  Overall, Zeberg’s technical read contrasts sharply with the optimism that defined much of 2025. Global demand reached record levels, with investment and central bank buying helping push the market to more than 50 all-time highs throughout the year. Analysts had projected further gains in 2026 if macroeconomic risks intensified, but that outlook is now colliding with a different interpretation of market dynamics, namely, that gold’s steep ascent has left it vulnerable to a sharp unwinding should investors rotate out of safe-haven trades. Notably, gold ended the last session…

Top economist warns gold ‘about to fall over the cliff in a very big way’

2025/12/06 23:51

Gold’s record-setting run may be facing a sharp reversal, according to economist Henrik Zeberg, who warned the metal is on the verge of a major downturn.

His latest analysis argues that the momentum behind gold’s 2025 surge is weakening rapidly, with technical indicators now pointing to a sizable correction ahead, he said in an X post on December 6.

Zeberg warned that gold is “about to fall over the cliff in a very big way,” noting that the narrative of rising inflation expectations can no longer sustain prices at current elevated levels.

The warning comes as gold trades near historic highs above $4,200 per ounce, driven earlier this year by aggressive investment flows, central bank buying, and expectations of Federal Reserve rate cuts.

According to Zeberg’s analysis, price action is unfolding inside a large, exhausted consolidation zone, with gold repeatedly failing 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 edged higher, the RSI has been trending lower, signaling weakening momentum beneath the surface.

The setup is further pressured by an ascending trendline now at risk; a break below it would confirm a structural breakdown and potentially open the door to a deeper decline.

Contrasting gold rally 

Overall, Zeberg’s technical read contrasts sharply with the optimism that defined much of 2025. Global demand reached record levels, with investment and central bank buying helping push the market to more than 50 all-time highs throughout the year.

Analysts had projected further gains in 2026 if macroeconomic risks intensified, but that outlook is now colliding with a different interpretation of market dynamics, namely, that gold’s steep ascent has left it vulnerable to a sharp unwinding should investors rotate out of safe-haven trades.

Notably, gold ended the last session valued at $4,198, down about 0.24% for the day. Year to date, the metal has gained 60%.

Gold year-to-date price chart. Source: TradingView

The minor pullback came amid mounting expectations of a U.S. Federal Reserve rate cut next week, while silver soared to a record high. Dovish commentary from several Fed officials has further fueled expectations of monetary easing.

Featured image via Shutterstock

Source: https://finbold.com/top-economist-warns-gold-about-to-fall-over-the-cliff-in-a-very-big-way/

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