Deja Vu: Gold Price Swings Like 1968 – Prachachat
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Gold Price Plunge: Why Did Prices Fall Sharply in April 2024?
Table of Contents
Updated October 26, 2025, 06:35:04 AM PST
What Happened?
Gold prices experienced a meaningful drop in April 2024, falling by more than $300 per ounce in a single session - the largest single-day decline in over 12 years. On April 19, 2024, gold futures for June delivery closed at $2,327.70 per ounce, a substantial decrease from the previous close of $2,664.40 according to Reuters. This represented a 13.2% drop, the biggest since November 2021.
Key Factors driving the Decline
Several converging factors contributed to the sharp decline in gold prices. The primary driver was a stronger U.S. dollar. A stronger dollar makes gold more expensive for investors holding other currencies, reducing demand.Kitco reported that the U.S. dollar index rose sharply on April 19th,exacerbating the downward pressure on gold.
Additionally, comments from Federal Reserve officials suggesting that interest rate cuts might be delayed also played a role. Higher interest rates typically reduce the appeal of non-yielding assets like gold, as investors can earn a return on their money elsewhere. Specifically,comments from Fed Governor Christopher Waller indicated a need for more data before supporting any rate cuts as reported by CNBC.
a significant liquidation of positions by speculative traders, triggered by technical selling and margin calls, amplified the price drop. This created a cascading effect, as falling prices prompted further selling.
Impact on investors and the Market
The sudden price drop caught many investors off guard.Those holding gold futures contracts, particularly those with high leverage, experienced substantial losses.The decline also impacted gold mining stocks, which generally fell in value as the price of gold decreased.
Though, the drop also presented a potential buying chance for some investors. Those who believed the decline was temporary may have seen it as a chance to acquire gold at a lower price. Physical gold demand, particularly in Asia, remained relatively robust, providing some support to the market.
| Date | Gold Price (USD/oz) | Change | Percentage Change |
|---|---|---|---|
| april 18, 2024 | $2,664.40 | – | – |
| April 19, 2024 | $2,327.70 | -$336.70 | -12.67% |
| April 22, 2024 | $2,395.80 | +$68.10 | +2.93% |