Gold Tumbles Below $4,350 as Bond Yields, Liquidity Pressures Trigger Selloff
Gold prices plunged abruptly, shedding over $1 trillion in market value within hours as rising Treasury yields and fading Fed rate-cut expectations undercut the traditional safe-haven asset. The selloff defied geopolitical tensions, with silver and gold collectively losing nearly $2 trillion.
The 10-year U.S. Treasury yield’s surge to 4.40% created a gravitational pull toward interest-bearing assets. Simultaneously, sticky inflation and repriced Fed expectations forced institutional players to unwind gold positions to meet margin calls—a 'mechanical selling' phenomenon that snowballed as stop-loss triggers activated.
Market technicians note gold’s high liquidity made it the first casualty of the liquidity crunch. The breakdown suggests further downside unless yields stabilize or risk sentiment deteriorates sharply.
