12.02.202618:29:17UTC+00Gold Tumbles Amid Broad Liquidation

Gold slumped more than 3% to below $4,920 per ounce on Thursday afternoon, deepening its sharp correction as broad-based selling across asset classes forced investors to unload precious metals to meet margin calls and cover losses elsewhere. The drop occurred even as the US 10-year Treasury yield fell to its lowest level in over two months, indicating that the move was driven less by expectations of higher interest rates and more by short-term liquidity needs and position unwinding after a prolonged rally.

Silver and copper also posted steep losses, underscoring the breadth of selling pressure across the metals complex. While markets still anticipate upcoming CPI data to confirm cooling inflation and continue to price in two Federal Reserve rate cuts later this year, near-term flows are being dictated by deleveraging rather than a reassessment of monetary policy.

Despite the pullback, lower yields, ongoing central bank buying, and persistent geopolitical risks continue to underpin the longer-term outlook for bullion, suggesting that once forced selling abates, gold may find renewed support.