Spot Gold Extends Losses, Slips 3% to $4,809.87/oz Amid Market Volatility

Gold markets witnessed another wave of selling pressure as spot gold dropped 3% to $4,809.87/oz, extending its recent losses. The fall comes in the wake of aggressive profit-booking and margin hikes announced by the Chicago Mercantile Exchange (CME), which raised gold margins from 6% to 8%.

The correction highlights investor caution as global economic signals remain mixed. While gold has traditionally served as a safe-haven asset, recent volatility has prompted traders to rebalance portfolios. Analysts suggest that the decline may be temporary, with long-term fundamentals still favoring gold amid geopolitical tensions and inflationary concerns.

Key Highlights

• Price Movement: Spot gold last down 3% to $4,809.87/oz.
• Trigger: CME margin hike on gold futures from 6% to 8%.
• Market Reaction: Aggressive profit-booking led to sharp sell-off.
• Investor Sentiment: Safe-haven demand weakened amid volatility.
• Outlook: Analysts expect continued fluctuations but long-term bullish fundamentals remain intact.

Sources: Moneycontrol; The Hindu BusinessLine; CME Group; TradingView