Overview
- Gold slipped under $4,000 per ounce after several sessions of selling, marking its weakest level in over three months.
- Analysts said the drop was driven by traders selling gold to raise cash for margin calls and capital needs, a pattern described by Justin Lin as liquidity-driven selling.
- A broad equity selloff and a rotation out of AI-related stocks into U.S. Treasuries helped push investors toward safer fixed income and away from the metal.
- Markets lowered bets on a near-term Fed rate hike to below a 10% chance and rising Brent crude above $113 a barrel has lifted inflation concerns that could limit any gold rebound.
- The price fall has already produced larger local declines, such as weekly gram prices in the UAE, and extends a cumulative drop of more than 20% since U.S.–Iran hostilities intensified in late February.