Gold: 4th BIGGEST Drop In History (This Happens NEXT)

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**Deasy** (0:29)
Gold has dropped 10% or more in a single day only three times in modern trading history. 1980, 1983, and just recently, January 31st of 2026 And right now, gold is down 10% today. So in today's video, we're going to look at gold's reaction to the largest pullbacks in history, a week later, two months later, and two years later. Because unless gold buyers step up today, we're going to have the fourth largest drop in history. Now, gold extends losses amid this brutal flush. And now the precious metal has shifted from a strong momentum trade earlier this year to a losing bet amid the Middle East conflict. And in fact, gold has had its worst weekly performance since 1983 Now, we are seeing unconfirmed reports that Dubai, Saudi Arabia and Qatar Central Banks are offloading gold reserves to raise funds. Now, here's exactly why you should be worried about those three countries in particular. We're going to look at gold reserves, the difference between 2019 to 2024, and then we're going to look at the most recent data, Q4 2025 Now, Saudi Arabia is 15th for gold reserves and Qatar is pretty low. They're ranked 35 and UAE is also low 41 But look at the difference of the year change. The second to bottom line, 231% change in gold reserves. So measuring from 2019 to 24, UAE is ranked number 5 and Qatar is ranked number 7 So these two countries are top 10 when it comes to gold accumulation by percentage of the reserves. And that's even more interesting when you zoom out and see how small those countries really are. Now this is Q4 2025 gold reserves and measuring the change from Q3 2025 And you'll see one of the largest droppers, Qatar, right here. They moved almost a ton of gold in the last quarter. And you also have the Russian Federation selling pretty heavily. Would not be surprised if those countries have really accelerated selling over the last week or so as well. Now we're going to look at those historical returns on gold. Like I said, 7 days later, 60 days later, 2 years later. But we're also going to look at the average and maybe try to see where's gold heading from here. Now first thing we're going to look at is January 1980 Now first look how crazy that drop is back in January of 1980 You can see, is this just one, that's a Monday, that's a Tuesday. Huge huge drop for gold. But looking at the day closed, so we go out 7 days, you'll see gold gain 3%.
But if you were to go out 60 days just to see, you know, all right, well, what's the more long-term return that we're looking at here? Yeah, we're deep in the negative. We are deep in the negative, and you see it right here. Just going in the basically the middle of this candle right here. Gold's down about 21%.
So 7 days later, gold was higher 3%. 60 days later, gold was lower 21%.
Now for 2 years later, we're just going to use the monthly candles and count out 24 bars because, you know, 24 months and 2 years. And you can see, yeah, gold is down almost 40% 2 years later. So when you zoom out from 1980 after the major drawdown, it is not exactly a rosy picture. Now let's go to 1983 All right, now these are daily candles in 1983 And look at that drawdown. I mean, you can see the markets closed on Friday, open on Monday, and it was painful. Now Monday would close in the red. So the Monday close was here. Just in case you were wondering, if the candle is green and then it opened on the bottom, closed on the top, the wick was where it was earlier in the middle of the day. If you see a red candle, it opens on the top, closes on the bottom. And again, the wicks were where it were earlier in the day. And you can just see here, this opened on Monday way, way down. Seven days later though, it is up 6.1%. Now, when you go forward about two months, you'll see it's actually up about 8%. So seven days later, up 6.1. 60 days later, 7.6. Well, what about two years later though? Now, this happened February 28th, 1983 So this is the February monthly candle. You count out 24 bars. Yet again, it is down, pushing towards 40% decline. So once again, in 1983, you zoom out, things start looking ugly. Now, we have the major, major drawdown in January of this year. Now, remember, this is the third largest drop in history, and today, we're looking at the fourth largest drop in history, and a week later, it's basically at the same price, and we don't have two months' worth of data, but we have 52 days' worth of data, and right now, it's down about 10%. But where are we at today? Have the buyers stepped in? Well, let's cut to the charts here. Now, on gold's run-up, this is October of 25 Gold had a little bit of consolidation. You can see a little consolidation here, a little consolidation here, but pretty good consolidation here. Well, this would actually act as resistance. So one, two, three, four dailies, crashed through on the fourth one, and then acted as resistance. Acted as resistance, and then we haven't seen it until today. So now have the buyers stepped up. Check this out. When I zoom in to the four-hour, very, very strong bounce. So this is a good sign. This is a bullish sign. It does see that maybe the traders are looking at this level as a potential area for support for gold. And so if this bullish momentum continues, we are not going to have the fourth-largest day. But the latest four-hour candle is turning red. Let's zoom in to the one-hour. All right, so right now, this is a mixed message. This is chopping up and down. And so a lot of this is going to happen. What is going on with the Middle East? But right now, gold's history does not bode well. Two years later, 40%. Two years later here, down 40%, 1980, 1983 And so gold could be looking at a potential top. And then when I show you the weekly, you'll kind of see what I'm saying here. We're going to go to a log chart just to make it a little bit cleaner. After we have a very, very strong move, it takes a long time. There's a lot of consolidation. This is 1980 Here we have another strong, strong bit of accumulation here. This is where it gets a little funky. Gold would pump 600% and then it would start to consolidate. And if you look right here, gold pumped about 600%. Now, what is this pump? Do we have a 600% pump? It's not quite. It's not quite. But let me go ahead and say this. I don't expect this pump to go to 600%.