What caused the sudden drop in gold prices?

The sudden drop in gold prices was primarily caused by a rapid change in investor sentiment, leading to pure speculation rather than being driven by fundamental economic factors.

How low did gold prices fall?

Gold prices fell to below $4800 per ounce for the first time, after previously closing at $5375.10.

What are the implications of this market behavior?

The implications include potential further fluctuations in precious metal markets, driven by short-term speculation and investor anticipation of economic signals.

Who is Leonid Khazanov?

Leonid Khazanov is a gold market expert who provided insights into the recent fluctuations in gold prices.

Speculative Fluctuations Hit the Yellow Metal: Expert Explains the Sharp and Sudden Drop in Gold Prices

Q: What impact did this drop have on silver prices?

The drop in gold prices also affected silver, which fell below $80 per ounce for the first time since January 12, after reaching a historic high of over $121 per ounce.

Gold prices have experienced a sharp and sudden decline in global markets, a notable drop that has raised questions among investors, especially after a wave of record highs recorded by the yellow metal in recent days.

The main reason: speculation, not fundamental factors

In explaining this decline, gold market expert Leonid Khazanov clarified that the primary reason for the drop is a rapid change in investor sentiment, emphasizing that what is happening in the market is “pure speculation” rather than a reflection of fundamental economic factors.

Investors Torn Between Optimism and Betting on a Decline

Khazanov stated that the market consists of two clear categories of speculators:
the first was betting on continued increases, while another group decided to bet on a decline and take profits, which ultimately led to strong selling pressure and a sharp drop in prices.

Shocking Numbers in One Session

According to market data, the price of gold fell today, Friday, to below $4800 per ounce for the first time, after closing in the previous session at $5375.10, marking one of the fastest drops in recent times.

Silver and Other Metals Are Affected

The decline was not limited to gold alone, as the price of silver also fell below $80 per ounce for the first time since January 12, after having surpassed the $121 per ounce mark on Thursday, recording its highest level in history.

Fluctuations Likely to Continue

Observers believe that precious metal markets may witness further fluctuations in the coming period, amid the dominance of short-term speculation and investors' anticipation of any economic or monetary signals that could redirect the market.