Gold prices have fallen below the $2,900 mark and are currently hovering around the $2,890 mark on Thursday. The XAU/USD index has dipped close to 2% this week after hitting a high of $2,945 during the weekend. On Thursday’s opening bell, the precious metal fell more than 25 points dipping 0.87% in the charts.

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On the flip side, the US dollar surged on Thursday’s trade rising by 0.24% in the indices. It went up 0.26 points and the DXY index, which measures the performance of the US dollar stands at 106.68. The US dollar strengthened as treasury yields rose making gold dip in the indices.

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Is Gold’s Bull Run Over?

The record-breaking gold carry reversed course this week after shedding 2% in value in the last five days. However, the rally might be far from over and the dip could be a temporary blip. Carsten Fritsch, Commodity Analyst at Commerzbank explained that traders took advantage of the price rise and booked profits in gold.

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Fritsch explained that speculative investors indulged in sell-offs but long-term holders remain solid on gold’s prospects. Therefore, the dip could be temporary allowing investors who accumulate the dip for further gains.

“In view of the continued rise in the gold price to new all-time highs, speculative financial investors could have taken advantage of this by building up further long positions. Instead, they reduced their positions,” said Fritsch to Kitco News. He added, “Apparently, these investors consider the upside potential of gold to be exhausted, and are therefore taking profits. The rise in the gold price is thus being driven by fewer and fewer market participants.”

Bulls are looking to push gold prices above the $3,000 mark and build positive momentum for the glittery metal. It could continue its price surge after the sell-off cools down and begins its run in the charts.