Gold fell 3.7% to $4,687.52 after a sharp 10% plunge last Friday, dragging the metal below $5,000 for the first time since early 2025. A firmer dollar, higher margins and profit‑taking on a rally that had pushed gold to record highs triggered the sell‑off in the market week.

CME Group raised COMEX gold futures margins to 8% from 6% and silver to 15% from 11% to curb volatility. The move followed a sudden repricing of rate expectations after President Trump nominated Kevin Warsh as Fed chair, sparking a broader unwind of crowded positions in the market.

Deutsche Bank’s Michael Hsueh argued the drop reflects positioning stress, not a fundamental shift, and kept a $6,000 target. Barclays’ Emmanuel Cau called the slide a near‑term reset after an overheated rally, noting gold remains technically stretched but not a bubble. UBS sees volatility within a structural uptrend.

Analysts warn that a sustained reversal would require central banks to restore full policy credibility, conditions not yet met. UBS projects consolidation between $4,500 and $4,800 before a mid‑year rebound to $6,200. Investors should monitor Fed signals, inflation data, and central bank demand for bullion in the market.