Gold Market Correction Not a Sign of Bull Market's End

The gold market has been experiencing a correction since January 2026, but is it a sign that the bull market is over? The answer lies in how we measure the market's performance. Most investors are anchored to the recent peak of $5,589 and measuring all subsequent movement against it, which produces emotionally compelling numbers but analytically misleading figures.

When compared to the December 2025 year-end close, gold is only down around 5% year-to-date, a historically unremarkable decline. The two-year return for gold has been an impressive ~+110%, and investors who entered before the bull cycle in 2024 are still up approximately 100% from end-2023 entry levels.

The correction in late January and early February 2026 was a liquidation of excess positioning, not an exit from the macro thesis. The rapid mean reversion indicates that structural demand remained intact beneath the speculative noise. Three key pillars support the gold market: the US fiscal trajectory, de-dollarisation and central bank reallocation, and federal reserve credibility.