Gold Posts Largest Single-Week Decline in 43 Years

Gold rebounds briefly, forming an intraday V-shape pattern, falling over 5% from the daily high and breaking below the important $4,500 support level. This week, it has plummeted over 10%, reaching a seven-week low, marking the largest weekly decline since March 1983.

The trigger for the sharp decline was also a oil crisis: Middle Eastern oil-producing countries, facing revenue losses due to falling oil prices, were forced to sell gold reserves for cash, severely damaging gold prices. This historical background has sparked market fears of a “repeat of history.”

Mark Hackett of Nationwide pointed out that traditional safe-haven assets are collectively failing, as bonds continue to bleed due to inflation and concerns over the US government’s budget, while gold also declines. Money market funds have become the preferred safe haven for investors, indicating funds are staying on the sidelines rather than shifting into systemic allocations.

Spot gold fell 3.43% to $4,498.31 per ounce, down 10.37% this week; COMEX gold futures dropped 2.16% to $4,505.70 per ounce, down 11.07% this week.

Spot silver declined 6.89% to $67.801 per ounce, with a weekly loss of 15.85%; COMEX silver futures fell 4.54% to $67.980 per ounce, down 16.28% this week.

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Editor: Wang Xuning