Why gold rate falls today: gold price forecast: Why is gold down today? Gold price crashes over 5% — its worst single-day drop since 2013; silver plunges 7% - The Economic Times
Gold prices witnessed a dramatic fall of over 5%, marking their steepest single-day decline since 2013. The sudden drop came as investors shifted focus toward stronger U.S. economic data and rising Treasury yields, which boosted the dollar and dampened demand for precious metals. Expectations that the Federal Reserve may delay interest rate cuts added to the selling pressure, causing a ripple effect across global markets. Silver prices also took a major hit, tumbling nearly 7% in the same session. Analysts attribute the correction to profit-booking after a prolonged rally in gold prices earlier this year. The decline highlights growing investor caution amid uncertainty about the Fed’s next policy move and global inflation trends. Despite the slump, experts believe long-term demand for gold may stay firm as geopolitical risks and inflation concerns continue to support safe-haven buying over time.
The Key points
- Gold prices fell over 5% in one day.
- Biggest single-day drop since 2013.
- Silver prices plunged nearly 7%.
- Strong U.S. economic data strengthened the dollar.
- Rising Treasury yields reduced gold’s appeal.
- Investors anticipate delayed Fed rate cuts.
- Profit-taking followed recent gold price highs.
- Global markets saw ripple effects from the crash.
- Analysts expect long-term gold demand to remain steady.
- Inflation and geopolitical concerns still support gold buying.
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