Gold Plummets: Longest Losing Streak in Over 100 Years Signals Major Shift
Gold is flashing a severe warning signal to traditional investors, plunging for ten consecutive days in its worst streak since February 1920. The precious metal has crashed approximately 27% from its January peak above $5600, marking a historic 10% correction that questions its safe-haven status. Analysts are scrambling to identify the catalyst behind this unprecedented sell-off and whether a rebound is imminent.
Why Are Gold Prices Falling?
Gold saw a massive upswing beginning from late 2025, after increased macroeconomic uncertainty and geopolitical tensions. Investors took a risk-off approach, pivoting their funds from risky bets and pouring them into safe havens, such as gold and silver. However, the tide seems to have turned over the last 10 days as the yellow metal faces its most significant battle in over a century.
Gold’s price correction could be fueled by rising energy costs after the US began military strikes on Iran. According to Bart Melek, global head of commodity strategy at TD Securities, ““
Gold’s downtrend over the last 10 days could also be due to expectations of interest rates staying high for a longer period. According to CME FedWatch, there is a 95.9% chance that interest rates will remain the same after the April 29 Federal Reserve meeting.
Melek believes gold may have a continued struggle over the second quarter of 2026 as well. However, he anticipates the commodity to pick up steam by the end of the year on expectations of an interest rate cut. The strategist stated, ““
