Gold Steadies After Sharp Drop Sparked by Wider Market Jitters

Gold steadied after a sharp decline sparked by a wider selloff across financial markets.

Bullion was near $4,920 an ounce in early trading, after plunging 3.2% in the previous session — the biggest one-day drop in a week. The sudden decline accompanied jitters on Wall Street, where prices buckled across asset classes on concern over the impact of AI on companies’ earnings.

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The dramatic pullback in gold — which didn’t have a clear catalyst — was likely intensified by selling from commodity trading advisers using computer models to bet on price moves, said Michael Ball , a macro strategist at Bloomberg.

Investors are now looking to US inflation figures due later Friday that may shape expectations for the Federal Reserve’s next move. Robust January jobs data published this week for the Fed to cut interest rates again by midyear. Lower rates are a tailwind for precious metals, which don’t pay interest.

Spot gold was steady at $4,920.59 an ounce as of 7:22 a.m. in Singapore. Silver fell 0.1% to $75.20. Platinum and palladium were little changed. The , a gauge of the US currency, was flat during the previous session.