What gold's nearly 30% crash from all-time highs tells us about markets and the economy - Business Insider

AI desk brief

Gold is down about 29% from its January high and 9% YTD, trading below $4,000/oz, as higher yields, a firmer dollar and fading physical demand overwhelm usual safe-haven support. The article frames the move as a break from traditional correlations, with the 10-year Treasury yield around 4.91% (+77bp YTD) and the USD index at 101 (+3% YTD), both raising the opportunity cost of holding bullion.

WGC data cited in the piece show bar and coin demand down 19% YoY and global jewelry demand down 17%, while central bank buying remains a support. The author also points to risk-asset liquidation and margin calls in the AI sell-off as a reason gold has been sold alongside equities, with markets still pricing a 75% chance of another Fed hike this year and 21% odds of an additional hike in January.