Gold Faces Worst Week in History, Plunges Nearly 10% to 43-Year Low, Market Logic Shifts

International gold prices plummeted nearly 10% this week, potentially marking the worst single-week performance since 1983—43 years ago. Following the outbreak of geopolitical conflict, gold prices fell instead of rising, with cumulative declines of 13%, as safe-haven sentiment completely receded.

As of Friday, gold was trading at $4,570 per ounce, erasing all gains from the past two months. This decline was primarily driven by hawkish statements from the Federal Reserve, cooling rate-cut expectations, a stronger U.S. dollar, and concentrated profit-taking. Traditional safe-haven logic has failed, capital continues to flow out of the gold sector, and gold prices face significant downward pressure in the near term.