Gold's Sudden Decline

After reaching a new all-time high, gold prices experienced a significant drop of over 1% on Friday. This decline coincided with the occurrence of quadruple witching, a quarterly event that often leads to increased market volatility.

Understanding Quadruple Witching

Quadruple witching is a phenomenon that happens four times a year, marking the simultaneous expiration of four different types of futures and options contracts. This event forces traders to make quick decisions on whether to sell and repurchase their positions or to cash out for profits.

Market Reactions

At 9:50 am ET, gold was trading at $3,009.20 per ounce, marking a 1.18% decrease. Silver also saw a downturn, dropping 2% to $32.91 per ounce. Meanwhile, platinum decreased by 0.95% to $980.15 per ounce, and palladium experienced a slight increase of 0.10%, reaching $938.48 per ounce.