Gold Tumbles Amid Broad Liquidation
Gold tumbled more than 3% to below $4,920 per ounce on Thursday afternoon, extending its sharp correction as a cross-asset unwind forced investors to liquidate precious metals to meet margin calls and cover losses elsewhere.
The decline came even as the US 10-year Treasury yield slid to its lowest level in over two months, suggesting that the move was not driven by higher rate expectations but by short-term liquidity demands and position unwinding after an extended rally.
Silver and copper also dropped sharply, highlighting the breadth of the selling pressure across metals. Although markets expect upcoming CPI data to show moderating inflation and still price in two Federal Reserve rate cuts later this year, near-term flows were dominated by deleveraging rather than policy repricing.
Despite the setback, easing yields, continued central bank purchases, and persistent geopolitical uncertainty continue to provide an underlying foundation for bullion once liquidation pressures stabilize.
Source: Tradingeconomics.com
