Gold prices fall nearly 5% after hitting record highs

Friday 30 January 2026 - 11:00

By: Sahili Aya

Gold prices fall nearly 5% after hitting record highs

Gold prices continued to retreat on Friday as investors moved to lock in profits following the precious metal’s sharp rally earlier in the week. After reaching unprecedented levels, the market shifted into correction mode, triggering a notable pullback.

In early trading, the price of gold dropped by nearly 5%, briefly extending losses beyond that level. The decline followed a record surge that had pushed prices to historic highs just a day earlier, reflecting heightened volatility in global commodities markets.

Market analysts say the downturn is largely driven by profit-taking rather than a fundamental shift in demand. After a rapid rise, many investors opted to secure gains, a common reaction after strong upward momentum in safe-haven assets such as gold.

Despite the current pullback, gold remains at elevated levels compared with earlier months. Analysts note that broader economic uncertainty and geopolitical tensions continue to support long-term interest in the metal, even as short-term fluctuations persist.