Gold's Glitter Dims Amid Global Economic Woes

Gold prices plunged over 10% in futures trade, driven by macroeconomic pressures like rising inflation and crude oil prices. The sharp decline raises concerns about global economic stability, as the metal is no longer seen as a safe-haven asset. Analysts predict continued volatility.

Gold prices have taken a dramatic plunge, falling more than 10% in futures trade on Monday. The decline comes amid a major global sell-off in precious metals, spurred by rising inflation fears and climbing crude oil prices. These factors have collectively clouded the broader economic outlook.

Analysts note that traditional safe-haven perceptions of gold are overshadowed by liquidity-driven selling. The strengthened U.S. dollar and increasing bond yields have further fueled this selling frenzy, leaving gold down 33% from its all-time high earlier this year.

Market experts anticipate that gold may face further challenges, as it has broken key support levels. While short-term rebounds are possible, the metal's role as a go-to asset in economic uncertainty is being questioned, especially with institutional shifts in regions like the Arab Gulf.

(With inputs from agencies.)