World gold prices today continued to fall sharply, marking a clear reversal after a series of "dizzying" increases and historical peaks last week. This development reflects a wave of massive profit-taking by investors, in the context of the USD recovering and expectations for US monetary policy changing rapidly.
In the most recent trading session, spot gold prices fell deeply to 4,893.21 USD/ounce, officially losing the psychological milestone of 5,000 USD/ounce, after approaching the peak of 5,600 USD/ounce. In just a short time, gold prices have "evaporated" more than 700 USD/ounce, showing a rare level of volatility and cautious sentiment spreading on the precious metals market.
USD strengthens, market changes state
The direct reason for pulling world gold prices down today comes from the recovery of the USD. The greenback appreciated after US President Donald Trump announced the decision to nominate Mr. Kevin Warsh as Chairman of the US Federal Reserve (Fed).
This information quickly changed the expectations of the global financial market. Mr. Warsh is considered to have a tough stance on inflation control, upholding the independence of the Fed and not supporting drastic interest rate cuts. This caused investors to reduce expectations of a strong monetary easing cycle - a factor that was once the main driving force behind gold's rally.
As the USD strengthens, gold - which is valued in this currency - becomes more expensive for investors holding other currencies, thereby weakening buying demand in the international market.
Cash flow withdraws after a series of steep gains
Before plummeting, gold prices experienced one of the strongest periods of increase in many years, when investors turned to safe-haven assets amid concerns related to US policy, geopolitical risks and global public debt pressure.
However, the too-fast upward momentum pushed the market into a state of excessive buying, especially for positions using high leverage. In the context of thin liquidity, just a push from policy information is enough to activate a chain selling wave, causing prices to fall deeply in a short time.
Analysts believe that the current decrease is a strong correction after excitement, when speculative cash flow withdraws to preserve profits. This is a common scenario for markets that increase in a "parabolical" form, with the characteristic of rapid increase - rapid decrease.
Long-term trend not broken
Although world gold prices today fell sharply, many experts believe that the long-term trend of gold has not been reversed. Foundation factors such as high global public debt, prolonged geopolitical instability, along with persistent buying activities by central banks are still considered an important support for the precious metal.
In addition, demand for silver and other metals in the context of shifting to green energy, electric vehicles and high technology also contributes to maintaining long-term cash flow interest in metals.
Today's world gold price diễn biến shows that the market is entering a period of strong and unpredictable fluctuations. For short-term investors, major fluctuations may bring opportunities but also pose high risks if management discipline is lacking. Meanwhile, long-term investors are recommended to closely monitor policy signals, especially the direction of the Fed's management in the coming time.
The sharp drop in gold prices after setting a peak is not an unusual phenomenon, but an inevitable adjustment of a market that has increased too quickly. In the current context, gold is still the focus of attention of global investors, but the road ahead is predicted to be not smooth, with fluctuations still continuing.
