Gold Slumps Toward $4,000 as Tech Selloff Hits Global Markets

Gold slumped as much as 2.4% to around $4,091 an ounce on Tuesday, approaching a low struck earlier this month, as a broad selloff in technology stocks reverberated through global markets. Silver also plunged as much as 5%, reflecting the intensity of the risk-off move. The declines came as the rout in SpaceX shares extended to a third day, erasing $600 billion in market value, while Korean stocks tumbled 10% amid extreme volatility. Even as gold is traditionally viewed as a safe-haven asset, it often falls during sharp cross-market selloffs as investors liquidate positions to meet margin calls and raise cash.

For gold and precious metals traders, the current price action underscores gold's dual nature: while it serves as a long-term store of value, it can behave like a risk asset in the short term during liquidity crunches. The sharp drop in silver, which is more industrial in demand, highlights the broad-based selling pressure. Traders can track these moves in real time on NowPrice's live gold dashboard, which provides up-to-the-second pricing on spot gold, silver, and related instruments. The selloff also comes against a backdrop of elevated real yields and a stronger US dollar, both of which typically weigh on gold prices.

Looking ahead, traders will watch for any signs of stabilization in equity markets, particularly in the tech sector, as a recovery there could ease the liquidity squeeze and allow gold to rebound. Key data releases this week include US durable goods orders and the core PCE price index, the Federal Reserve's preferred inflation gauge, which could influence rate expectations and the dollar's trajectory. Additionally, geopolitical developments, including US-Iran tensions, may shift risk sentiment. A sustained break below $4,000 could trigger further selling, while a bounce above $4,150 would signal renewed buying interest.