Gold's Sudden Drop Amid Market Volatility

Following a record-breaking surge to an all-time high, gold prices experienced a sharp decline, dropping by 1.18% to $3,009.20 per ounce by 9:50 am ET. This downturn coincides with the occurrence of quadruple witching, a significant event that impacts futures and options markets.

Understanding Quadruple Witching

Quadruple witching is a term used to describe the simultaneous expiration of four different types of financial derivatives: stock index futures, stock index options, stock options, and single stock futures. This event, occurring four times a year, often leads to increased volatility in the markets as traders adjust their positions.

Impact on Other Precious Metals

Silver and platinum also felt the market's tremors, with silver prices falling by 2% to $32.91 per ounce and platinum decreasing by 0.95% to $980.15 per ounce. In contrast, palladium saw a slight increase of 0.10%, reaching $938.48 per ounce.