Gold’s spectacular rally, which made it one of the best-performing assets in 2025, has been undergoing an equally dramatic correction. Prices have tumbled around 29% from January’s record high of around $5,600 an ounce to below $4,000.
The most popular ETF benchmark, SPDR Gold Trust (NYSE:GLD), has gone deeply into the red, down 8.12% year-to-date.
The main catalyst has been an inflationary energy shock from the U.S.-Iran war. Inflation concerns forced a prompt revision of lower-interest-rate expectations that had driven the precious metals bull market of 2025. Instead, investors encountered tightening monetary policy and rapidly shifting sentiment.
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