Why Is Gold Plunging? Gram Gold Crashes to 6,300 TRY Level: 4 Key Reasons Behind the Sharp Drop

BILGINET MARKET ANALYSIS — Following weeks of record-breaking rallies driven by geopolitical tensions and central bank purchases, gold prices have experienced a sudden and steep correction. In domestic markets, gram gold tumbled toward the 6,300 TRY level, while spot gold tested critical technical support zones.

Global hedge funds and institutional investors triggered large-scale profit-taking after technical indicators signaled heavily overbought conditions in bullion futures.

Repricing of Federal Reserve rate-cut expectations pushed 10-year US Treasury yields higher, boosting the US Dollar Index and pressuring non-yielding precious metals.

Once initial support levels gave way, automated trading systems and leveraged positions triggered a cascade of stop-loss orders, accelerating the intraday drop toward the 6,300 TRY mark.

Market strategists note that central bank physical demand remains intact for the medium term, pointing to the 6,250 - 6,300 TRY band as a major support zone for long-term investors.