Gold Prices Slide 10% After Record Surge

Gold markets saw a sharp correction this week after reaching historic highs. On January 29, April futures initially climbed to $5,626.8 per ounce before falling to $5,126.

The decline continued on Friday, with spot gold dropping 6.9% from the previous close to $5,001 per ounce. Analysts link the pullback to profit-taking and stronger dollar movements.

Despite the recent correction, gold has gained roughly 20% for January, marking its sixth consecutive month of growth. This increase comes amid persistent economic uncertainty and geopolitical tensions, and could be the largest monthly jump since 1982.

Market watchers also pointed to U.S. political developments. President Donald Trump announced plans to nominate a successor to Federal Reserve Chair Jerome Powell. Former Fed governor Kevin Warsh, an advisor to Trump on economic policy, is seen as a potential candidate, adding further volatility to markets.

Tim Waterer, chief trading analyst at KCM, noted that both profit-taking and expectations around Fed leadership have weighed on gold prices. Investors remain cautious as markets digest these shifts.