Gold Crumbles Nearly 20% But Stays Above Crucial $4,000 Level

Gold has suffered its worst monthly loss since 2013, dropping nearly 19% from its January record near $5,600. Despite this significant decline, prices remain above $4,000, a far cry from the $1,620 base set in 2022.

The current correction follows an extraordinary run, with gold climbing about 44% in 2025 and setting 53 record highs. Annual demand topped 5,000 tonnes for the first time on record, carrying prices from near $3,400 at the end of last year up to January's peak before the selloff.

Central bank demand remains a key factor, with official buying hitting 863 tonnes in 2025, well above the prior decade's average. China extended its purchase streak to 17 straight months through March, and forecasters expect close to 850 tonnes more this year.