Has the Gold Price Ever Fallen Drastically?

Jakarta, Pintu News – The price of gold does not always rise; in some periods, the precious metal has actually fallen very sharply. History shows that gold can fall more than 8-10% in a single day and tens of percent in a matter of months, usually during major liquidations, central bank policy changes, or corrections after extreme rallies.

A similar event was repeated in late January 2026 when global gold prices collapsed after setting a new record high. Therefore, it is important for investors to understand that gold is a volatile asset even though it is often referred to as a “safe haven”.

Examples of Major Crashes: From 2013 to the Covid-19 Crisis

One of the most famous gold crashes occurred in April 2013, when the spot price of gold fell by about 8-9% in a single session and recorded a two-day drop of almost 15%, becoming the largest daily decline in more than 30 years.

This correction contributed to a decline of around 30% in 2013 and ended a 12-year rally that had previously made gold seem invincible. The event showed that when inflation expectations fall and large investors reverse positions, gold prices can fall very quickly.

In March 2020, at the start of the Covid-19 pandemic, gold also experienced a sharp decline although it later set a new record. The World Gold Council noted high volatility driven by massive cross-asset liquidation, margin calls, and reduction of leveraged positions amid global market panic.

After the sell-off phase subsided and central banks launched massive stimulus, gold prices recovered and broke new records in a relatively short period of time. This example confirms that drastic declines are often more related to liquidity crises than to the loss of gold’s fundamentals as a hedge.

Read also: Why is Antam’s Gold Stock Empty?

Drastic Fall Again in 2026 After Record Highs

The most recent wave of decline occurred at the end of January 2026. After hitting a record of around US$5,594 per troy ounce, gold prices plummeted by almost US$900 in just a few days and lost almost 10% in a single session-the biggest daily drop since the early 1980s.

Analysts’ reports cited the sudden increase in margin requirements at the CME, the sharp strengthening of the US dollar index, and massive profit-taking as the main triggers for the correction.

Research institutions and industry players described this event as a “historic sell-off” that wiped out most of gold’s gains since early 2026 and triggered heavy losses in the much more volatile silver market.

However, many analysts also think that this crash is more of a “violent reset” than the beginning of a structural bear market, as long-term drivers such as the global debt burden and geopolitical uncertainty have not changed.

Read also: 25 Gram Gold Price in 2026

What are the Lessons for Gold Investors?

These episodes show that gold prices have-and can again-drop dramatically in a short period of time. In the short term, gold can behave like other risky assets when forced liquidations, margin policy changes, or institutional portfolio rotations occur.

However, once liquidity pressures subside, gold often finds equilibrium again as long-term investors capitalize on lower prices. For retail investors, understanding these dynamics is important so as not to assume gold is immune to corrections and to stick to risk management, diversification and a long-term investment horizon.

Gold-Based Crypto: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Tether Gold (XAUt), a physical gold-backed ERC-20-based stablecoin, where 1 token represents 1 troy ounce of pure gold. The gold is stored in vaults in Switzerland and each token is directly linked to certified gold bullion. The system uses automated algorithms to efficiently manage the allocation of gold and Ethereum addresses.

XAUt tokens are available and traded on various crypto exchanges. XAUt is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Guardian Gold. Why Precious Metals Plunged and What It Means for Investors. Accessed February 6, 2026
• Featured Image: Generated by AI