Gold Slides 3.4% in One Day in Rare 20-Year Drop
Summary
- Gold prices fell 3.4% in a single day, marking a drop rarely seen over the past 20 years.
- The Kobeissi Letter said that since 2006, gold’s average daily move has been 0.05%, its standard deviation has been 1.19%, and the day’s decline posted a Z-score of -2.90, putting it in statistically extreme territory.
- The Kobeissi Letter said that, assuming a normal distribution, the probability of a daily decline of that size is 0.2%, or about once every two years, and that the recent surge in government bond yields has triggered unusual volatility across the precious metals market.
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Gold prices tumbled more than 3% in a single day, a decline that an analysis said was rarely seen over the past 20 years.
Market analysis newsletter The Kobeissi Letter wrote on X on September 29 that gold fell 3.4% that day.
According to The Kobeissi Letter, gold has posted an average daily move of 0.05% since 2006, with a standard deviation of 1.19%. The day's decline carried a Z-score of -2.90, placing it in statistically extreme territory.
Assuming a normal distribution, the probability of a daily drop of that magnitude is about 0.2%, or roughly once every two years.
The newsletter added that the recent surge in government bond yields has been driving unusual volatility across the precious metals market.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.