Gold Plummets Nearly 2% in a Day, Breaks Key Support Level

Gold Tumbles as Market Dynamics Shift

On March 13, spot gold saw a sharp decline, falling below the critical 5,090 level to a low of 5,078, closing the session down 1.76%. This marks a notable weakening in bullish momentum.

Key Factors Behind the Slide

Several macro forces contributed to the drop:

• A rebound in the U.S. dollar index pressured dollar-denominated assets;
• Stable inflation data reduced bets on aggressive rate cuts by the Fed;
• Equity markets recovered, shifting investor focus away from safe-haven assets.

Technically, gold has broken below the 20-day moving average, with the 5,000 level now in focus as the next potential support zone.