BNP Paribas Wealth Management After the correction, is gold still a safe haven?
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Feb 6, 2026 A review of gold and precious metals' dramatic 2025 gains and the sharp late‑January correction. Discussion of what triggered the sell‑off and why speculative buying and rate expectations mattered. Thoughts on whether to hold or accumulate during dips. Examination of central bank demand, geopolitical tensions and gold's role as a diversifier and potential safe haven.
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Extraordinary Run Then Sharp Correction
- Gold and other precious metals had an extraordinary run into January 28, 2026, driven by strong momentum and speculative buying.
- Despite a sharp drop from peak levels, gold remained up over 12% year-to-date after the correction.
Price Drop Yet Yearly Gain Remains
- Gold fell from an intraday peak of $5,600 to just over $4,800 an ounce during the correction.
- Even after this fall, gold remained positive for the year, highlighting the magnitude of the prior rally.
Speculative Fervour And A Fed Appointment
- Retail and speculative investors in Asia and the developed world piled into precious metals, amplifying the upmove.
- The appointment of Kevin Walsh as Fed chair acted as a short-term trigger that unwound some speculative bets.