Spot gold fell sharply on Thursday, briefly nearing the key $4,000-an-ounce support area and giving back almost all of its gains since summer. Jesse Colombo, an independent precious-metals analyst and founder of the BubbleBubble Report, said gold’s simultaneous decline with the US dollar index and Treasury yields was unusual. He pointed to possible pressure from tech-stock selling, speculation about yen intervention and defensive repositioning ahead of next week’s Federal Reserve meeting.
By Thursday afternoon, spot gold was at $4,034.76 an ounce, down 2.57% on the day and at a fresh intraday low. Colombo said prices were testing the $4,000-to-$3,900 support zone that held during the summer. Until gold breaks decisively below that range, he said, it is too early to conclude that the pullback marks a deeper trend change.
Gold falls despite a weaker dollar and lower yields
Colombo described Thursday’s market action as “very unusual.” The US dollar index fell by about 15 points rather than rising. Typically, the dollar tends to strengthen on days when gold drops sharply, but the dollar, precious metals and bond yields all moved lower this time, breaking that usual pattern.
US Treasuries were among the day’s better-performing assets. Falling yields would normally offer some support to gold, which pays no interest, yet bullion continued to decline. Oil prices edged higher, but Colombo said the increase was not large enough to explain gold’s rapid retreat.
Yen gains fuel speculation about intervention
Colombo also noted a marked rise in the yen, which he said could point to intervention aimed at supporting the currency. If yen intervention puts pressure on the dollar, it would usually provide a lift to precious metals. Gold fell alongside the dollar on Thursday, however, so that factor alone does not explain the move.
Colombo presented a chart tracking known yen interventions since February and said Thursday’s currency moves resembled those seen during earlier confirmed intervention periods. Such actions can sometimes occur over consecutive sessions, he said, leaving open the possibility of further intervention that evening or in the days ahead. There had been no public confirmation of intervention as of Thursday.
Tech-stock selling may have triggered broader liquidations
Colombo said selling in artificial-intelligence and technology stocks may also have weighed on gold. Shares in those sectors came under pressure in North American and global markets, while South Korea’s KOSPI and Japan’s Nikkei also fell sharply. Cryptocurrency markets were under pressure as well.
In that environment, investors may sell assets such as gold to raise liquidity or reduce exposure to risk. If the decline in gold was driven mainly by tech-stock selling, Colombo said, gains in bonds and lower yields may have cushioned the fall. Had yields risen instead, gold might already have broken below $4,000, he added.
$4,000–$3,900 zone is the next key test
Colombo said he was reluctant to draw an early conclusion from the technical picture. As long as gold holds above the $4,000-to-$3,900 area, the current move could still be a test of support before a double bottom or a technical rebound. A decisive break below the zone would prompt a reassessment of where support may emerge next.
Gold has already erased its gains since August, and its price action is weak. But the links between the dollar, Treasury yields, the yen and tech-stock liquidations remain unclear. With next week’s Federal Reserve meeting approaching, policy signals—particularly any renewed hawkish tone—could continue to shape defensive positioning and liquidity flows in precious metals.