Gold prices slumped 3.9% on Thursday as a stronger US dollar and a sharp decline in global equities triggered broad risk-off sentiment across financial markets. Spot gold briefly dropped to 4,768.50 dollars an ounce before recovering part of the losses, while US gold futures for April settled 1.2% lower at 4,889.50 dollars. Investors cut positions in precious metals to meet margin calls and manage losses in equities, prompting profit booking after recent record highs in both gold and silver. Analysts note that while volatility remains elevated, underlying fundamentals for gold have not materially changed, with geopolitical tensions and economic uncertainty still providing longer-term support. The outlook now hinges on the trajectory of the dollar, equity market stability and upcoming geopolitical developments, including US–Iran talks and ongoing tensions involving Russia, Ukraine and China.
Highlights
- Spot gold intraday drop of 3.9% to 4,768.50 dollars an ounce.
- US April gold futures settle 1.2% lower at 4,889.50 dollars.
- Silver plunges up to 14% intraday amid valuation concerns.
- Stronger dollar, equity losses and margin pressure drive selling.
- Analysts see short-term downside but unchanged longer-term fundamentals.
Why it matters
The sharp move in gold underscores how quickly safe-haven trades can unwind when dollar strength and equity stress coincide. For investors, the episode highlights the need for disciplined risk management, awareness of margin exposure and realistic expectations about volatility in assets often viewed as defensive.
