International gold witnessed a sharp decline today, extending its selloff by around $400 per ounce in the past few hours.
Latest data on TradingView suggests that bullion has plunged to $4,500 per ounce for the first time since February 2. It is now down nearly $1,000 since hitting its record-high of $5,589.38 on 28 January 2026.
Meanwhile, silver has dropped to as low as $72 per ounce.
The drop comes amid shifting macroeconomic dynamics, where an oil-driven inflation shock is pushing overall price levels higher. As a result, expectations for near-term interest rate cuts are being scaled back, leading to a rise in real yields and putting downward pressure on gold prices.
So traders on X wrote that the current inflationary trend is largely cost-driven rather than demand-driven. This type of inflation can weigh on economic growth beneath the surface, even as headline price levels rise.
Meanwhile, others suggested that once the external shock—such as elevated oil prices—begins to ease, economic conditions could shift again, potentially reviving expectations for monetary easing and improving the outlook for gold.