In this video: Chief Market Strategist Gareth Soloway breaks down the "unbelievable" intraday action in Gold, which surged to a staggering $5,600/ounce before a violent $500 flush in a single hour. Is this a "doji" warning sign of a top, or just a massive liquidation of over-leveraged traders? Video by Gareth Soloway.
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The international spot gold (XAU/USD) experienced a dramatic "flash crash," plummeting from an all-time record high of approximately $5,600 to a daily low near $5,100 within roughly 60 minutes. This rapid 4–8% decline erased an estimated $3 trillion in global market value amid extreme volatility.
As of January 30, 2026, the market has partially stabilized, with spot gold trading between $5,220 and $5,260.
Key Drivers
-Intense Profit-Taking: After gold nearly doubled in value over the last 12 months, traders rushed to lock in gains once the $5,600 resistance level was touched.
-Risk-Off Rotation: A sharp rout in "Magnificent 7" tech stocks (notably Microsoft’s largest drop since 2020) triggered broader market liquidations, forcing some investors to sell gold to cover losses elsewhere.
-Geopolitical De-escalation: Reports suggesting a cooling of tariff threats and specific geopolitical tensions (e.g., U.S.-Iran or U.S.-Europe) reduced the immediate demand for safe-haven assets.
-Technical Triggers: The Relative Strength Index (RSI) had reached extreme overbought levels (near 89) before the crash, signaling a correction was imminent.
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