{"id":13256,"date":"2026-06-28T11:09:00","date_gmt":"2026-06-28T08:09:00","guid":{"rendered":"https:\/\/en.tomanifesto.gr\/?p=13256"},"modified":"2026-06-28T11:09:00","modified_gmt":"2026-06-28T08:09:00","slug":"gold-how-it-lost-29-of-its-value-what-investors-fear","status":"publish","type":"post","link":"https:\/\/en.tomanifesto.gr\/?p=13256","title":{"rendered":"Gold: How It Lost 29% of Its Value\u2014What Investors Fear"},"content":{"rendered":"

The decline in the price of gold<\/strong> by nearly 29%<\/strong> from the record high it reached in late January served as a reminder that the precious metal is not always a safe choice for those seeking short-term returns. <\/p>\n

On the other hand, it continues to be viewed as an investment that pays off primarily over the long term. <\/p>\n

The impressive rally, from approximately $2,000<\/strong> per ounce in February 2024 to the all-time high of $5,594<\/strong> in January, has given way to a sharp correction. Following the outbreak of war in the Middle East<\/strong>, the price trended downward and last Wednesday fell below $4,000<\/strong> per ounce. <\/p>\n

Although gold<\/strong> usually strengthens during periods of international uncertainty\u2014as was the case during the war between Israel<\/strong> against Hamas<\/strong> in 2024 and U.S. President Donald Trump<\/strong> in 2025\u2014this time, the market took a different course. <\/p>\n

Inflation, interest rates, and the stock rally changed the mood<\/strong> <\/h3>\n

The main cause of the decline is attributed to the rise in inflation<\/strong>, which stemmed from the energy crisis triggered by the war in the Middle East. The markets anticipated that the Fed<\/strong>, as well as other major central banks, would raise interest rates<\/strong>, making investments in fixed-income securities more attractive. <\/p>\n

In the same vein, the European Central Bank raised its deposit rate in June to 2.25%<\/strong>, from 2%<\/strong>, further reinforcing this trend. <\/p>\n

At the same time, international stocks rebounded after the initial shock of the war, led by the Artificial Intelligence<\/strong> sector and the technology sector as a whole. Many investors chose to lock in significant profits from gold, which they had acquired at much lower prices, putting additional pressure on the market. <\/p>\n

History Repeats Itself \u2013 Central banks continue to buy gold<\/strong> <\/h3>\n

The price trend of gold<\/strong> has shown in the past that sharp rallies can be followed by multi-year periods of decline. A prime example is 1980<\/strong>, when, following the second oil crisis, its price had skyrocketed to $680<\/strong> per ounce, only to be followed by nearly 37 years<\/strong> of trading at significantly lower levels. <\/p>\n

The next major rally came after the financial crisis of 2007<\/strong>, pushing gold above $1,860<\/strong> in September 2011. A new period of decline followed, until it once again surpassed $2,000<\/strong> in 2020, amid the coronavirus<\/strong> pandemic. <\/p>\n

gold exchange-traded funds (ETFs)<\/strong> are also playing a significant role in the current correction; they had supported the rise in recent years but are now experiencing continuous capital outflows. <\/p>\n

In contrast, central banks<\/strong> continue to build up their gold reserves. According to a recent survey by the World Gold Council<\/strong>, 45%<\/strong> of central banks expect to increase the share of the precious metal in their foreign exchange reserves over the next twelve months. <\/p>\n

Protection against inflation<\/strong>, greater portfolio diversification<\/strong>, and heightened geopolitical risks<\/strong> remain the key reasons why gold retains its significant position. At the same time, 74%<\/strong> of the central banks that participated in the survey estimate that over the next five years, their exposure to assets denominated in dollars<\/strong> will decrease, to a greater or lesser extent, their exposure to assets denominated in dollars<\/strong>. <\/p>\n","protected":false},"excerpt":{"rendered":"

\n The nearly 29% decline in the price of gold from the record high it reached in late January served as a reminder that the precious metal does not …<\/p>\n","protected":false},"author":1,"featured_media":13257,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-13256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/13256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13256"}],"version-history":[{"count":0,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/13256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/media\/13257"}],"wp:attachment":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}