Will Gold Crash Again? Insights from Past Market Trends

Hello everyone,
How are you all? I hope readers her are fine and doing great in their life.

So far I have shared about a lot of things. We have talked about crypto market, different token analysis, play to earn games, and what not. Today I am writing a blog for the first time about the gold and the reason behind that is due to the buzz going on around with gold and also me personally being interested in gold for a long term investment.

So a lot of videos and reels are going viral where people are talking about the possible gold crash in upcoming weeks or months. To understand if we are actually about to see a gold price crash down in near future we will analyze the price movement of gold for three different historical time frames specifically consisting of the covid-19 crisis and the 2011-2016 gold price crash down which in my opinion was one of the biggest gold crashes witnessed by all of us.

In the screenshot above we can see three circles marking the highs and lows for gold in August 2011 to be the all time high followed by the crash of 20% in approximately 4 months time frame ( 119 days ).

Above downfall graph is from the first circle in the screenshot number 2.

Now after this we saw another high in gold price in the year 2012 from which the longest downfall for gold where we saw it making lower lows for continuously 1190 days was witnessed and that is when people lost a lot of money. You can be a long term investor and holder but when gold starts to give you 42% losses it is something difficult to survive. Have a look at the screenshot below to understand that situation.

Now let us see what happened during the Covid-19 crisis when it comes to gold. The financial market was wrecked without a doubt but gold was performing differently because it is a safe asset to invest your money in and that is why we saw a rough pump of 40% in less than a year in the price of gold which is actually a extra ordinary performance.

Nut what happened when we crossed the Covid-19 crisis? The financial market started to recover and gold price took a correction of 20%.

Now currently we are facing the tariff war due to which the market is wrecked and that is why you can see that gold is performing really extra ordinary.

I mean it is continuously making higher high for last two years. Now I will not be analyzing all these years but we will check out how the gold price movement has worked since trump took his oth on 20th January 2025.

You can see that roughly a gain of 25% was made and it means we can see a correction as soon as tariff war gets over. I can't predict the top for gold at this point though some traders have predicted it to be near 3400 points but we never know if that is where the top will be. The thing that is true is we might see a crash in the price of gold in near future as that is how the market has worked over the period of time for many years.

We see a crisis followed by a pump in gold followed by the crisis getting over and financial market recovering and gold taking a correction. I am not a financial advisor and so I have not given any financial advise here and one should always do their own research. What are your thoughts? Share with me in the comments.

Thank You