Global gold price falls to two-week low

Global gold plunged over 100 USD per ounce in a single session, now nearing the 4,300 USD mark.

At the close of trading on 1/9, spot global gold price lost 119 USD, falling to 4,327 USD an ounce. This marks its two-week low since 19/8, with prices continuing to fluctuate around this level on the morning of 2/9. The precious metal depreciated after US government bond yields surged and the US dollar strengthened. Gold's drop below its 200-day moving average at 4,528 USD last week further triggered technical selling pressure.

"We are witnessing technical pressure. Global government bond yields are at multi-year highs, all exerting pressure on the gold market," stated Jim Wyckoff, an analyst at American Gold Exchange. During the 1/9 session, US government bond yields rose to their highest level since 1/2025. Rising tensions in the Middle East sparked inflation concerns and triggered a wave of global bond sell-offs.

Although gold is traditionally a hedge against inflation, rising interest rates typically pressure the precious metal by increasing the opportunity cost of holding it. The US dollar's rise on 1/9 also made gold more expensive for buyers outside the US.

Last week, gold prices briefly reached a three-month high. The precious metal reversed its trend after Federal Reserve (Fed) Chairman Kevin Warsh warned that "much more needs to be done" if inflation does not return to the agency's 2% target. Investors are now increasingly betting on a Fed rate hike in September, with this probability rising to 66%.

This week, the US will release additional employment data, providing investors with more clues about monetary policy. "In the short term, gold prices are likely to trade sideways or decline slightly. The same applies to silver," Wyckoff concluded. On 1/9, spot silver prices fell 3.7% to 64 USD an ounce.