Gold Tumbles 4% After Record High, But January Still Best Month Since 1980s

• Gold prices fell over 4% on Thursday, with spot gold dropping to $5,149.99 an ounce, as investors engaged in profit-taking after reaching a fresh record high of $5,594.82.
• Despite the sharp pullback, gold is up approximately 19% this month, positioning January to be its strongest month since the 1980s.
• Safe-haven demand for gold remains strong due to geopolitical tensions, including US-Iran friction, and uncertainty surrounding US monetary policy.
• Tether plans to allocate 10-15% of its portfolio to physical gold, and SPDR Gold Trust holdings are near a four-year high, indicating broader interest.
• Other precious metals like silver, platinum, and palladium also saw significant declines after hitting recent record highs, with analysts noting their vulnerability to speculative flows.

Why It Matters: Gold saw a sharp profit-taking sell-off after record highs, yet January remains its best month since the 1980s.