Gold Drawdowns

After a historic run in 2025 that continued into January, gold prices have rediscovered gravity over the last five months. After hitting an intraday high of $5,586.20 per ounce on 1/29, prices have declined by more than 20%, forming a steady downtrend in the process. Earlier this month, prices broke below the 200-day moving average (DMA) for the first time since November 2023, ending a streak of more than 600 trading days above that level. From an intraday low of $4,046 on 6/11, gold attempted a rally but stalled out just below the 200-DMA.

Gold prices are set to close out the week more than 20% below their January closing high, and as of 6/11 were down 22.6% from that level. As shown in the chart, this ranks as the largest drawdown for the metal since November 2022. Despite that relatively deep hole, it’s interesting to note that historically, gold has traded in a 36% drawdown relative to all-time highs due to essentially 20 years over the last 50 years when it was consistently in a drawdown of at least 50%. It hasn’t been a great five months for gold, but it could easily be worse.

Want more from Bespoke?  You can start by joining our Think BIG mailing list, where you’ll receive an interesting market stat in your inbox a few times per week.  All we need is your email address.  Join now by clicking here or on the image below.