Gold prices dropped late Friday and continued to fall further, putting the metal on track for its steepest weekly decline since 1983. Experts say such a sharp fall of around 10 percent in just one week is extremely rare.
In the last 24 hours, gold futures fell by 1 percent to $4,570 per ounce, while spot gold slipped by 0.4 percent to $4,560.45. Overall, gold has lost nearly 10 percent value this week, continuing its downward trend for several weeks.
Read more: Honda CB 125F plan offers 0% markup with easy installments for limited time
The comparison with 1983 is not about price levels but about how quickly gold is falling. Many traders are highlighting this rare drop, calling it one of the fastest weekly losses in decades.
One major reason behind the fall is the strong US dollar. When the dollar becomes stronger, gold becomes expensive for buyers in other countries, which reduces demand.
Another factor is the changing outlook of the US Federal Reserve. Officials warned that inflation may rise again, and traders now expect interest rates could go as high as 50 percent by October 2026.
Gold is usually seen as a safe investment during inflation, but higher interest rates make other investments more attractive. This has reduced interest in gold.
At the same time, rising tensions in the Middle East have affected market sentiment. Instead of buying gold as a safe asset, many investors are now selling it, which has increased the price drop.
Read more: Jaecoo J8 plug-in hybrid SUV coming to Pakistan? Check price, features inside
Gold is falling fast because investors are moving to safer or better earning options. The strong dollar is also playing a big role. Markets look uncertain, so people are reacting quickly.
