The SPDR Gold Shares ETF (GLD) experienced a sharp pre-market decline of 5.22%, reflecting a significant sell-off in the popular gold investment vehicle during early trading hours.
The sudden downturn was driven by a combination of profit-taking activity and heightened market warnings. Prominent investor Cathie Wood issued a stark warning on social media, stating that the real bubble is in gold, not artificial intelligence, and that a rising U.S. dollar could pop it. This sentiment emerged amidst what analysts described as an overheated and "dysfunctional" precious metals market, where prices had become disconnected from traditional fundamentals after a historic rally.
Additional pressure came from reports of operational abnormalities at certain gold trading platforms, raising concerns about market stability. The sell-off also occurred as former President Trump was set to announce his nominee for the next Federal Reserve Chair, creating uncertainty about future monetary policy. Following gold's surge to record highs above $5,500 per ounce, the market was ripe for a correction as investors locked in gains, leading to the sharp pre-market decline in the gold ETF.
Comments