Gold witnessed a sharp correction last week, with London spot prices declining more than 33 percent from their all-time high of $5,594 recorded at the end of January 2026. In the domestic market, MCX gold has also fallen significantly, correcting by over 23 percent during the same period. The selloff comes after a strong rally over the past two years, which pushed prices to record highs amid geopolitical tensions and macroeconomic uncertainty. However, the recent weakness reflects changing global cues, particularly a strong US dollar and expectations of further monetary tightening. While the declines have rattled investors, the larger question remains whether this is a temporary correction or a shift toward a deeper bearish trend.
