Gold's Wild Week: Why Prices Surged then Fell 11%

Gold prices moved sharply in late January 2026, surging past $5,500 before dropping 11% in a day. The swing ranks among the largest single-day moves in decades.In the latest episode of Through the Noise, Prof Campbell Harvey explains the trading dynamics behind the reversal, showing why the episode reflects a rapid correction following an extreme run-up rather than a change in underlying fundamentals. The discussion traces how retail buying, institutional momentum strategies, leverage, and margin calls reinforced one another on the way up and again on the way down.Cam also addresses claims linking the drop to Federal Reserve leadership news, explaining why that story misses the timing and scale of the move.The analysis focuses on how trading dynamics, not new information, drove the reversal.