Gold Plunges Over 2% Amid Market Volatility

Gold prices crashed more than 2% today, hitting their lowest point in three weeks as the precious metal fell to $2,599.94 per ounce in spot trading by 08:57 GMT. This marks the steepest decline since October 6, with December futures contracts dropping even harder at 2.6% to $2,615.30 per ounce.

The sharp selloff comes as investors reassess their positions in the safe-haven asset. Gold had been riding high on economic uncertainty and geopolitical tensions, but today's drop suggests market sentiment is shifting.

For traders, this represents a significant technical break. The metal had been holding relatively steady above the $2,650 level for weeks. Breaking through this support zone opens the door for further declines if selling pressure continues.

The futures market is showing even more stress than spot prices, which often signals that institutional investors are positioning for lower prices ahead. When December contracts fall harder than current prices, it usually means big money expects the weakness to persist.

But here's what makes this interesting for investors: gold's recent strength had pushed it well above historical averages. A pullback was probably overdue. The question now is whether this is just a healthy correction or the start of a bigger decline.

Central bank policies remain the key driver here. If inflation data keeps improving and interest rates stabilize, gold could face more headwinds. Higher rates make holding non-yielding assets like gold less attractive compared to bonds or savings accounts.

For now, the technical picture looks shaky. If gold can't reclaim the $2,650 level quickly, we might see it test even lower support around $2,550.