Gold prices have witnessed a sharp correction, falling over 10% from recent record highs to around $5,160 per ounce, as a combination of global pressure and heavy profit booking weighed on bullion markets. The decline marks one of the steepest pullbacks in gold prices in recent times and comes amid heightened volatility across commodities.
One of the key reasons behind the fall is profit selling after gold’s strong rally over the past few weeks. Prices had surged to all-time highs, prompting traders and investors to lock in gains. As selling picked up, it triggered further downside momentum, leading to a sharp and rapid correction.
Gold prices are also under global pressure due to a broader sell-off across precious metals. Silver, which often moves in tandem with gold, witnessed an even sharper fall during the session, amplifying negative sentiment across the bullion complex. The simultaneous decline across metals suggests a coordinated unwinding of positions rather than metal-specific weakness.
In addition, the sharp correction reflects crowded positioning in gold trades. After an extended rally driven by safe-haven demand and strong inflows, markets became vulnerable to sudden reversals. Once prices started slipping, stop-loss triggers and aggressive selling accelerated the fall.
Despite the steep decline, gold remains significantly higher on a longer-term basis. However, the current move highlights how quickly prices can reverse when markets shift from accumulation to distribution.
Going ahead, market participants are closely monitoring whether gold finds stability near current levels or sees further volatility, as global bullion markets remain under pressure.
