I just saw what's happening with gold this week, and honestly, it's quite surprising. The precious metal plummeted below $4,350 in just a few hours, losing over one trillion dollars. Along with silver, the total losses approached two trillion dollars. Why is gold falling like this? That's what many traders are asking now.

Normally, when there are geopolitical tensions, gold rises. But this time, everything is the opposite. Despite the conflict in Iran and global instability, the metal remains under pressure. The main reason I see is the increase in US bond yields, which have risen around 4.40% in recent weeks. When bonds yield more, people prefer those assets over gold, which doesn’t generate interest. Additionally, hardly anyone expects Federal Reserve rate cuts anymore, so that doesn’t help either.

What’s interesting is that there’s a mechanical factor behind all this. Many traders needed liquidity because oil prices had risen and they needed capital to maintain positions. So they started selling gold quickly to get cash. Stop-loss orders were triggered, prices dropped technically, and a domino effect was created. Gold, being very liquid, was the first to fall.

The strange thing is that market observers notice something abnormal: while oil recovered gains and stock futures turned positive, gold kept falling. This shouldn’t normally happen. It suggests that perhaps a large player is being liquidated or there are liquidity gaps at certain levels, causing these sudden and sharp movements.

So, how low can gold go today and in the coming days? It has already fallen more than 14% in the last month. Analysts mention $4,304 as an important support level. If the price stays above that, there’s a chance for recovery. But if it drops below, the next targets would be between $4,270 and $4,200.

The question is whether this is temporary or if more pressure is coming. Long-term projections from major banks like JP Morgan still point to $6,000+, but in the short term, everything remains fragile due to high yields and lack of liquidity. Some analysts like Peter Schiff believe that all this selling is irrational, arguing that inflation should support gold, not push it down. But for now, the market is nervous.

In summary, gold is under pressure this week mainly due to technical and liquidity reasons, not fundamentals. Whether it stabilizes or falls further will depend on how inflation, interest rates, and market cash conditions evolve in the coming days. I will continue to monitor the movements.