Central Banks Accumulate Gold During 30% Correction

Gold has experienced a sharp correction, dropping from $5,500 to approximately $4,000 over a five-month period—a decline of almost 30%. This sell-off has triggered widespread retail liquidation, but official sector buyers are stepping in.

Central banks are reportedly using the dip to accumulate gold, a traditional safe-haven asset. The buying activity suggests that monetary authorities view the current price level as attractive, potentially providing a floor for the metal.

The contrast between retail panic and institutional accumulation highlights differing market perspectives on gold's long-term value.