XAU/USD drops 1.4% despite global equity selloff as investors favor the Dollar and Treasuries over bullion.
Gold prices fell to $4,020 in New York trading, down 1.4% from the session high near $4,075, as a global equity rout failed to lift demand for the metal. The decline extended below $4,000 despite a sharp selloff in Asian markets, where the Nikkei 225 lost nearly 4% and Korean shares plunged 11%.
Investors sought safety in the Dollar and government bonds instead, with the Dollar Index rising to a one-month high near 101.50 and Treasury yields easing. The shift reflects skepticism over AI spending returns and a pause in Middle East tensions, reducing gold’s appeal as a hedge.
The Dollar strengthened against the Yen, trading near 164.00, while shipping through the Strait of Hormuz remained subdued at fewer than 10 vessels daily, down from roughly 100 before the conflict.