Gold staged a rebound on Friday, climbing back to around $4,960 per ounce after Thursday’s sharp tumble, as investors grappled with a day full of market volatility.
The prior session had seen bullion fall over 3%, with liquidations across equities and cryptocurrencies as traders scrambled for cash amid growing uncertainty.
No single event triggered Thursday’s plunge, but the synchronized sell-off across multiple asset classes points to broad risk aversion, likely amplified by the invisible hand of automated trading.
Eyes now turn to US inflation data due later today, which could sway expectations for the Federal Reserve’s next policy moves.
Earlier this week, stronger-than-expected January jobs data reshaped market bets. Investors are now pricing in a first Fed rate cut in July rather than June, influencing strategies across currencies, stocks, and commodities alike.
Even amid swings, gold holds its ground. Concerns over currency debasement, ongoing central bank purchases, and persistent geopolitical tensions continue to underpin the metal, keeping it firmly in the safe-haven spotlight.
Friday’s rebound is a welcome relief, yet bullion still faces a modest weekly loss, leaving traders balancing short-term pressures with long-term hedging opportunities.
