55 Years of Data Reveals Gold Bull Market Path: Historical Pullback Revisited, Structural Support Still in Place
BlockBeats News, February 4th, after experiencing a rapid 10% decline last week, gold quickly rebounded, sparking a debate in the market on whether the bull market has come to an end. Analysts believe that this downturn is more likely a phased pullback within the bull market rather than a trend reversal.
Analysts point out that gold is currently in the third major bull market since 1971. Historically, during the two gold bull markets from 1971 to 1980 and from 2001 to 2011, there were multiple deep retracements of 10% to 20%, but they did not alter the long-term uptrend. This current bull market has also experienced multiple corrections, with volatility persisting.
What's different this time is that central banks' continuous and large-scale gold purchases have provided stronger structural support for the current cycle. Data shows that in 2025, global central banks' net gold purchases reached 328 tons. Several institutions believe that although the gold price is relatively overvalued compared to models, it has not yet formed a bubble.
UBS stated that a gold bull market usually only ends when central banks regain strong credibility and there is a fundamental shift in the monetary policy regime. Against the backdrop of doubts about the Fed's independence and ongoing geopolitical and debt pressures, gold is still in the middle to late stages of this bull market, and a sharp pullback may be seen by the market as a buying opportunity.
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