Gold prices declined late Friday night and continued to fall on Saturday, putting the precious metal on track for its steepest weekly drop since 1983 (~43 years), as a stronger US dollar and the worsening Middle East war dampened investor sentiment globally.
The rate comparison is not about the price level, but the scale of weekly losses. A drop of roughly 10 percent in one week is extremely rare, which is why som many traders on X are referencing 1983, the last time gold saw a similar sharp weekly decline.
In the past 24 hours, gold futures fell 1 percent to $4,570 per ounce, while spot gold slipped 0.4 percent to $4,560.45 during afternoon trading, according to Yahoo Finance. On a weekly basis, bullion has dropped around 10 percent, extending its losing streak for several consecutive weeks.
The decline comes amid shifting expectations around the US Federal Reserve which said inflation could get worse. Traders fear the rate will increase to 50 percent by October 2026.
Typically considered a hedge against inflation, gold has struggled as rising interest rate expectations boost the appeal of yield-bearing assets. At the same time, a stronger dollar has made gold more expensive for international buyers.
Market sentiment has also weakened following the recent escalation in the Middle East, with investors increasingly opting to sell rather than accumulate gold positions.
Despite geopolitical uncertainty, traders have shown limited appetite for bullion, waiting instead for clearer signals before re-entering the market.
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