Gold plunges more than 20% from record high

Weekly losses reached 3.3%, while the precious metal declined more than 20% from its record high above $5,400 in January. Concerns surrounding the artificial intelligence sector, shifting interest rate expectations, and investors moving into US Treasury bonds contributed to the decline.

Berenberg analysts described the simultaneous decline in gold prices and bond yields as a rare development not seen frequently since the 2008 global financial crisis. Growing expectations of interest rate hikes have increased pressure on non-yielding gold, while analysts warn that a sustained move below $4,000 could accelerate outflows from gold investment funds. Meanwhile, central bank gold purchases in September reached their highest monthly level since November 2024.