Gold has dropped nearly a fifth from its January record, its worst monthly loss since 2013, yet prices still hold well above the $4,000 zone.
Key Points:
› Gold has fallen close to 19% from its January record near $5,600. › Prices remain above $4,000, far above the $1,620 base set in 2022. › Central bank demand and rising macro risks keep long-term interest in place.
Gold Holds Above $4,000
Spot gold traded near $4,500 an ounce this week, far below the all-time high of $5,596 it reached on January 29 before the selling started. The drop now runs to close to 19% from that peak, among the sharpest corrections of a bull market that began in 2022 after gold bottomed near $1,620. The long uptrend that started that year still looks intact.
March alone brought the metal's biggest monthly decline since 2013, figures showed. Now $4,000 marks the level traders watch most closely.
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Rate Cuts And Oil Pressure Gold
A shift in rate expectations has driven much of the slide. The Federal Reserve now signals just one cut in 2026, a stance that keeps real yields high and lifts the cost of holding an asset that pays no income. One tailwind has become a headwind.
Conflict in the Middle East delivered a second blow this spring, as disruption near the Strait of Hormuz pushed oil sharply higher and lifted the dollar against most major rivals. That move forced several central banks, Turkey among them, to sell gold and defend their own currencies.
Central Banks Anchor Long-Term Demand
The structural case still leans bullish. Official buying hit 863 tonnes in 2025, well above the prior decade's average near 473 tonnes, and China extended its purchase streak to 17 straight months through March. Forecasters expect close to 850 tonnes more this year, keeping the pace near last year's level.
The longer case rests on a steady move away from the dollar, with rising geopolitical tension, firmer oil, and stubborn inflation backing that demand. Global debt above 100% of output keeps currency stability in sharp focus.
Gold's Record Run Cools
The current correction follows an extraordinary run.
Gold climbed about 44% in 2025 and set 53 record highs, with annual demand topping 5,000 tonnes for the first time on record. That rally carried prices from near $3,400 at the end of last year up to January's peak before the selloff set in.
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