Gold's Rollercoaster: From Record Highs to Sharp Reversal in Early 2026

• Gold surged to nearly $5,600 per ounce by January 2026, driven by safe-haven demand, a weaker dollar, and robust central bank buying.
• Prices retreated to $4,100–$4,300 per ounce by late March, erasing year-to-date gains and marking a 20–25% decline from the peak.
• The 2025 rally was fueled by geopolitical uncertainty, easy liquidity, a weaker dollar, and central bank de-dollarization efforts.
• The sharp correction in early 2026 was triggered by unwinding leveraged bets, a stronger dollar, tighter liquidity, and strain in West Asia surpluses.
• Axis Mutual Fund views this as a "detour in a long journey," with gold's long-term appeal remaining intact despite the short-term volatility.