The worst decline since 1983
Spot gold prices plummeted to $4,100/oz from a peak of $5,600 in January—a 27% collapse marking the worst monthly drop in 43 years. The metal has lost $1.5 trillion in market value in just three hours, along with silver.
The reversal of Fed interest rates
Rising inflation due to oil shocks has erased expectations for a Fed rate cut. Currently, CME FedWatch shows a 12.4% probability of a rate hike in April, instead of a zero chance of a rate cut, reversing months of easing predictions that had supported gold.
The paradox of a safe haven
Although the escalation of war often drives up gold prices, this crisis has caused the opposite behavior. Sky founder Rune Christensen has opened 20x leveraged gold long positions, betting that this sell-off represents a capitulation before stagflation returns.
