Multi Asset chart of the week | Insight Investment

Gold suffered a 14% drawdown at the end of January, a move much larger than its normal volatility

Stephanie Chan, CFA, Portfolio Manager, said: “The price of gold fell by 14% between 28 January and
2 February, a move much larger than its normal range of volatility seen in recent years. Over the past year, gold had been rallying along with risk assets and as the US dollar weakened; gold was seen as a potential alternative to the US dollar as policy uncertainty remained high in the US. Furthermore, the gold price move coincided with Trump’s nomination of Kevin Warsh as the next Fed chair, and given Warsh’s historical comments, the market was concerned about a marginally more hawkish Fed and ultimately a potentially stronger US dollar. Gold suffered a drawdown along with other cyclical sectors of the market that had had relatively strong performance in January, including semiconductors, materials, and industrials.”^†

Source: Insight Investment, Bloomberg as at 02 February 2026.