Recently, international gold prices have left many people both stunned and puzzled. On November 2, international gold prices fluctuated around $3,900 per ounce, marking a one-year low. On October 30, the international spot gold price briefly plunged to around $3,875, with a single-day drop of more than 3.6%. Against the backdrop of escalating tensions in the Middle East, surging international oil prices, and a sharp decline in U.S. stocks, gold—traditionally a safe-haven asset—not only failed to hold steady but instead became the epicenter of selling pressure.
Has the logic of gold investing changed?
This sharp decline was mainly driven by two competing forces.
The first is a shift in interest rate expectations: Middle East tensions pushed oil prices higher, fueling market concerns about a rebound in inflation and a delay in Federal Reserve rate cuts. Capital shifted toward the U.S. dollar and U.S. Treasuries, which offer more certain returns.
The second is a liquidity squeeze triggered by volatility in tech stocks: U.S. tech giants reported earnings that fell short of expectations, forcing investors to liquidate positions to meet margin calls. Gold, being highly liquid, was sold off to raise cash.
Is now a good time to buy the dip?
Experts say never treat gold as a short-term speculation tool, and certainly don't go "all in." Gold is better suited for long-term investment, serving as the "ballast" of a family's assets. Sina partners with major platforms for futures account opening, offering safe and efficient service with guaranteed protection.
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