In 2025, the gold price in the dollar region surpassed a recently set record more than 50 times, rising by 66.47 percent in the US and 47.49 percent in the Eurozone over the past year alone. The precious metal has thus not only improved its investors’ portfolio stability and risk-adjusted returns. In 2025, it also contributed significantly to the overall performance of many investor portfolios. Given the recent second gold price correction, this long-term development should not be overlooked.
Current gold price weakness: three main contributing factors
The Iran conflict is fueling global fears that oil shortages could persist or worsen further, which in turn would affect all areas of the respective economies. A key interest rate hike is therefore widely anticipated, which would have an adverse effect on the gold price. Two further reasons for the recent gold price drop: on the one hand, large-scale profit-taking by investors, and on the other, sell-offs by major investors to retain liquidity despite negative developments on the stock market and the resulting liabilities, e.g., from futures contracts.
Gold price rally since 2023
While the gold price rose by 10 percent in the Eurozone and 13 percent in the US dollar region in 2023, which we now regarded as moderate compared to later rallies, it had already reached 34 and 26 percent, respectively, by 2024, peaking in 2025. Following the recent plunge, 2026 has so far still seen the gold price gain 4.41 percent in the eurozone. Will the rally continue? A number of investors have recently taken the significant price dips as an opportunity to increase their gold allocations. And Hürriyet, one of Turkey’s largest daily newspapers, reports a veritable gold-buying boom in recent weeks in the inflation-plagued country.