Gold Faces Sharpest Weekly Drop in Decades
This week marked one of the most turbulent episodes in the gold market’s recent history. After a fleeting rebound early in the week, prices swiftly reversed, forming a sharp intraday 'inverted V' pattern. The metal plunged over 10%, hitting a seven-week low and recording its worst weekly performance since March 1983.
Breakdown Below Critical Support Triggers Sell-off
At one point on Friday, gold dropped below the psychologically significant 4500 level, sliding more than 5% from its intraday peak. The breach of technical support activated algorithmic selling and margin-driven liquidations, amplifying the downturn.
- Weekly price swing approached 12%
- Trading volume surged to a three-month high
- Gold-backed ETFs saw five consecutive days of outflows
Analysts attribute the collapse to cooling rate-cut expectations following stronger-than-expected economic data and a slowdown in central bank buying momentum. Near-term outlook suggests a period of heightened volatility and consolidation.