Should I Buy the Gold Dip? These Analysts Think So!

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May 20, 2025

Published

stock ticker with buying the dip As gold blows past expert price predictions and all-time highs, many investors wonder: Should I buy the gold dip?

The lingering uncertainty hovering over potential gold buyers is whether the rally is overheated or if there’s fuel left in the tank for further gains.

Retail investors may be glued to price charts, but central banks quietly stock up with only slight breathers here and there.

With expert forecasts growing increasingly bullish and the economic outlook not getting clearer, more analysts are urging investors to treat any slowdown in gold’s momentum as a buying opportunity.

Still Shining: Why Gold’s Not Done Yet

The yellow metal has defied already upbeat expectations thus far in 2025, barreling through several psychological and technical barriers. After hitting a relative peak of $3,500/oz, gold prices have retracted slightly. However, many major financial institutions and analysts anticipate this retraction (and potential future ones) to be short-lived.

The key pillars of gold’s intertia, such as central bank buying, macroeconomic decay, geopolitical tensions, and the metal’s reintegration into the banking system, stand strong.

When Pullbacks Are Buy Signals

Even with a positive consensus about gold’s bright future, economists and market analysts point to potential hurdles on its path to new highs. Instead of signaling stark reversals, many expect these headwinds to cause brief corrections, allowing ripe buy-the-dip opportunities.

👉 Related Read: Dollar Cost Averaging: What Is It & How It Maximizes Gold Returns

Here are some possible factors that could temper the yellow metal’s robust growth:

Rate Cut Pause or Policy Reversal

Lowering interest rates minimizes the opportunity cost of owning non-yielding assets, which makes gold and other precious metals more appealing. Thus, any significant delay or complete reversal in the Federal Reserve’s planned rate cuts could rein in gold prices. Trump’s tariff regime remains the wild card, forcing the Fed into a wait-and-see position.

Reignited Dollar Strength

The USD has sunk to multi-year lows as an accelerating de-dollarization trend and spiking national debt weigh on the world reserve currency. A sharp turnaround in the economic outlook could flip on the greenback’s engines, pulling people out of gold and other inflation-hedge assets. Yet, the long-term harm caused by a global loss of confidence in the dollar and persistent deficits is likely inescapable.

Overbought Conditions

The gold market is firmly in price discovery following several all-time highs as it searches for a fair price based on demand, supply, and other conditions. Technical analysis suggests that these phases of exponential growth are often accompanied by quick, sharp, but short-lived downturns. This happens when investors get spooked into selling following rapid price jumps. Given gold’s long-term upbeat outlook, these ruts are opportunities to dollar-cost average to a lower cost basis (and higher potential gains).

Easing of Geopolitical Tensions

The yellow metal’s impressive surge in 2025 is largely owed to deteriorating geopolitical relationships. Hot wars, bubbling conflicts, and trade tensions all destabilize the global economic order. If these pressure points release, safe-haven demand may diminish for a short period. A reduction in crisis fears could trigger a medium-term correction in gold.

Experts Say “Buy the Dip”

Bank of America – Beyond simply encouraging investors to buy-the-dip, strategist Michael Hartnett revealed that BofA remains “H1 buyers of dips in bonds, international & gold,” even as the metal climbs to new peaks.
Bloomberg – John Stepek, the owner of popular newsletter Money Distilled, colorfully describes gold markets as having “rallied sharply…with hope springing eternal in the bosom of the ‘buy-the-dip’ investor,” underscoring the prevailing sentiment of purchasing during corrections.
Economic Times – “Gold prices edged higher…as investors sought refuge in the precious metal following a previous session dip,” highlighting how the retail market is eagerly timing short-term pullbacks for long-term gains.
FX Leaders – Lead analyst at FX Leaders, Skerdian Meta, reports that “despite the current correction, historical trends suggest that pullbacks in gold prices often attract strong buying interest from long-term investors.”
Tai Wong (Independent Metals Trader) – In an interview with CNBC, Wong expressed his eagerness to pick up cheaper prices when they arrive, stressing: “The gold run to $3,500 was a little gluttonous and it needed a pullback to digest. Gold seems likely to trade sideways…but we are in a bull market, so significant dips will certainly be bought.”
Investing.com – “Gold remains a buy-on-dips play despite the recent pullback. For now, momentum indicators continue to generate bullish signals,” explains technical analyst David Scutt.

How high could gold go?

While it’s impossible to predict future price action with absolute certainty, the average 2025 gold price prediction has been steadily rising.

Gold’s vertical trajectory has forced major financial institutions and industry experts to revise their predictions to the upside, with many upping their benchmark more than once this year.

Currently, a growing number of analysts are putting $4,000 on the table in the near to medium-term. A smaller consensus is even forming around the possibility of $5,000.

Although specific figures might differ, the overall gold sentiment is bullish, suggesting any retreats in the market are buy-the-dip opportunities.

How Gold Can Help You Achieve Your Financial Goals

If you’re interested in learning more about how gold can help you achieve your financial goals, contact one of Scottsdale Bullion & Coin’s precious metal advisors. You’ll get one-on-one attention and personalized advice from industry veterans. Get in touch today by calling toll-free at 1-888-812-9892 or using our live chat function.

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