Gold Drops Amid Stock Market Crash Triggered by DeepSeek

Gold prices fell more than 1% on Monday, retreating from near-record highs reached in the previous session, as investors liquidated bullion positions amid a broad market sell-off driven by growing interest in Chinese artificial intelligence company DeepSeek.

Spot gold dropped 1.15% to $2,740.13 per ounce, pulling back from Friday’s near-record highs. Meanwhile, U.S. gold futures declined 1.2% to $2,744.40 per ounce.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

XAU/USD

Sharp declines in global stock markets spurred risk aversion across other asset classes, with U.S. Treasury yields falling to a three-week low and the U.S. dollar index reaching its lowest levels since December 18. This sell-off is largely driven by the broader stock market rather than interest rates or currencies. We are witnessing a certain degree of liquidity shortage.

The sell-off occurred ahead of the Federal Reserve’s first meeting of the year, where policymakers are expected to keep interest rates steady on Wednesday, according to the CME FedWatch tool.

Key Data to Watch

Investor attention will focus on any signals regarding future monetary policy decisions, as President Donald Trump begins his second term, with expectations that his tariff policies could fuel inflation.

Safe-haven demand will continue to support gold. A break through record to highs is possible as uncertainty persists over the Trump administration’s policy agenda.

In other metals, spot silver fell 1.5% to $30.15 per ounce after posting a 0.9% gain last week. Palladium dropped 3.1% to $957.16 per ounce, while platinum slipped 0.53% to $943.95 per ounce.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440