The decline is linked to dashed hopes of an interest rate cut by the Federal Reserve, a fall in speculative demand and a stronger US dollar, as per Business Insider.
While gold prices have witnessed a correction over the past few months, historical data suggests the current decline is still lower than many previous bear phases when it comes to precious metals, according to the July 2026 edition of DSP Netra.
The report claims that the correction from $5,602 per ounce in January to a low of $3,942 is an overall drawdown of around 30%. This is milder compared to previous declines.
Gold’s price: Big historical declines
The biggest correction came after gold prices
reached a peak in January 1980. The value of the metal plunged 71%. It took 19 years and 7 months to reach a durable bottom. It was able to reclaim the previous all-time high after 28 years.
After reaching a high point in December 1974, gold corrected 49%, reaching the bottom in almost a year and eight months. Similarly, after a peak in September 2011, prices fell 46%. The March 2008 cycle registered a slide of 34%.
The current cycle of gold prices crossed the 25% drawdown mark, or the peak-to-trough decline, within two months of racing an all-time high in January 2026.
However, the correction is still underway. DSP Netra’s data highlights that the durable bottom, where selling pressure is over, and eventual recovery period cannot be determined yet because of this reason.
Silver prices have also seen similar cycles. Historically, the prices of both precious metals have taken a while, from a few months to several years, to reach a durable bottom. Recovering to previous record highs has taken decades.
In contrast, the current correction started only after January, with both gold and silver reaching the 25% drawdown mark within one to two months.
With correction still underway, it may be possible that gold prices fall further. The World Gold Council has said that there is a potential for the metal to go as low as $3,500 an ounce by the end 2026 if ‘price consolidation’ continues.
