Following a stunning rally in which gold prices rose more than 30% this year — peaking at an all-time high of $3,500.05 an ounce — it appears that the yellow metal may be losing some of its sheen, at least temporarily.

On Friday, spot gold fell almost 2%, to close at $3,283.59, and U.S. gold futures fell 1.6%. The weekly drop, while small, is a shift in tone for the safe-haven asset that’s been on an adrenaline high due to geopolitical shudders, central bank buying, and trade tariff angst, reported Reuters.

For investors who prefer their gold without the vaults and pirate fantasies, ETFs have been a good point of entry. SPDR Gold Trust (NYSE:GLD) and iShares Gold Trust (NYSE:IAU) are spearheading the movement, tracking bullion’s advance with stellar year-to-date performance.

GLD, the heavyweight in the sector, has ripped higher along with spot gold, but with its Relative Strength Index (RSI) sitting at a stratospheric 77.70, it is potentially close to overbought levels. Any cooling in bullion prices has the potential to unleash a more precipitous decline in gold miners, which tend to leverage gold’s moves because of their operating leverage.

IAU, on the other hand, recently achieved a 52-week high and has gained more than 46% from its 52-week low. At an expense ratio of only 25 basis points, it presents a cheap way for retail investors to ride the rally.

For those wanting to dip a toe instead of going in swimming, the iShares Gold Trust Micro (NYSE:IAUM) provides reduced exposure with the same mechanics and a 0.15% expense ratio.

These funds enable investors to ride the gold momentum without having to time the physical market — or possess a medieval treasure chest.

Nevertheless, financial planners still raise a warning flag, suggesting gold allocations not exceed roughly 3% of one’s entire portfolio, according to CNBC. Gold is a hedge, not a hero.

Dollar Flexes, Gold Flinches

One of the main reasons why gold has recently stumbled is the revival of the U.S. dollar. A stronger greenback increases the cost of gold for foreign buyers, which can drain demand. Meanwhile, tensions between the U.S. and China, one of the main drivers of gold’s rise, are tentatively easing.

Beijing is said to be mulling exempting some US goods from its high tariffs, and President Trump has even been suggested to negotiate directly with China to defuse the long-standing row. Less geopolitical uncertainty, less need to take flight into gold.

Still, TD Securities’ Daniel Ghali says investors aren’t quite heading for the door.

“The apparent detente on tariffs is negatively affecting gold prices… But so far we’ve not seen substantial liquidations,” Reuters quoted him saying, implying faith that gold’s bigger-picture uptrend remains very much in place.

Technicals

But even though the underlying principles may still be in favor of the bulls, technical signals are flying warning flags.

FXTM’s Lukman Otunuga cautions that gold appears “heavily overbought” and may be primed for a pullback. A dip to support prices at $3,350, $3,200, or even $3,140 is not out of the question before investors come back in.

RBC Capital Markets analysts concur, maintaining that gold looks overpriced on macroeconomic arguments. A significant portion of the recent surge, they note, has been driven by uncertainty — an errant energy source at best.

Even in the short term, jitters aside, gold’s safe-haven status is hardly being withdrawn. Ongoing economic worries, central bank demand and political uncertainty still provide the metal with a strategic place in portfolios. But with overbought indicators flashing and a rising dollar stirring the pot, investors may want to temper optimism with a dash of old-fashioned caution.

Gold may still sparkle, but it’s no longer the low-profile play it was a year back. And for ETF investors riding this golden tide, it may be time to make up your mind, either to hang on tight or cut losses before the gloss wears off.

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