Gold price falls below $4,000 amid stock market rout - Equiti Global

AI desk brief

Gold briefly slipped below $4,000/oz, dropping as much as 0.9% to below $3,990 after a near-3% fall on Thursday, as the stock market rout triggered liquidity-driven selling. The metal is on track for its worst weekly performance since June and has fallen more than 20% since the US-Iran conflict began in late February; silver also slid toward $53.90/oz.

The move came despite falling Treasury yields and sharply lower Fed tightening expectations, with markets assigning less than a 10% chance of another 25 bp hike at next week’s meeting. The article says that unusual divergence points to forced deleveraging and margin-related liquidation overriding the usual support from lower rates, while Brent above $113/bbl and renewed Saudi energy attacks keep inflation risks elevated.