Gold price down by 8% to reach $4,098 and silver by 6.1% to $63.66, and what led gold to slip to 4-month low level in four months? The sharp fall in gold and silver prices has raised questions across global markets as investors respond to economic and geopolitical developments. Gold has recorded continuous losses and reached its lowest level in four months after a steep weekly decline. Silver and other metals have also followed the same trend.
Gold and silver prices declined due to a combination of global economic and geopolitical factors. Rising oil prices linked to tensions in the Middle East increased inflation concerns, which shifted market expectations towards possible interest rate hikes instead of cuts. Higher interest rates reduce the appeal of gold as it does not provide returns. At the same time, a stronger U.S. dollar added pressure on prices. Continuous selling by investors to cover losses in other assets also pushed gold.
