Gold Prices Plunge 3.25%, COMEX Gold Futures Break Below Critical $4,300 Mark

As of 21:00 Beijing time on September 21, international gold markets experienced a significant selloff. COMEX December gold futures traded at $4,217.4 per ounce, down 3.25% for the day, marking the largest single-day decline in recent periods as gold prices broke below the critical $4,300 psychological level.

Accelerated Decline Draws Market Attention

Compared to the morning session's modest 1% pullback, gold prices accelerated their decline during European and U.S. trading sessions, with losses expanding to 3.25%. This sharp drop indicates a significant shift in market sentiment with bullish forces notably weakened.

Market analysts attribute the accelerated gold price decline to several key factors: First, the U.S. Dollar Index strengthened significantly, exerting strong downward pressure on dollar-denominated gold; second, better-than-expected U.S. economic data reduced market expectations for Federal Reserve rate cuts; third, global equity markets rebounded, boosting risk appetite and triggering capital flows from safe-haven assets to risk assets; fourth, technical breakdowns triggered algorithmic trading and concentrated stop-loss orders.

Critical Technical Breakdown

Technical analysis shows COMEX gold futures broke below the $4,300 round number and multiple key technical support levels, weakening the short-term technical structure. Traders note that if gold prices fail to quickly recover $4,300, further declines toward $4,200 or even the $4,150 support zone are possible.

Volume data indicates today's gold futures trading volume surged over 40% compared to the previous session, demonstrating strong selling pressure. Open interest data shows speculative long positions decreased noticeably.

Investor Response Strategies

Precious metals investment experts recommend investors remain calm amid significant gold price volatility: Short-term traders should stay on the sidelines and wait for market stabilization signals; those holding long positions should strictly implement stop-loss strategies to prevent expanding losses; long-term investors may watch for effective support formation around the $4,200 level.

Analysts remind investors that short-term gold market volatility has intensified. Close attention should be paid to Federal Reserve officials' remarks, U.S. economic data, and geopolitical developments while maintaining reasonable position sizing and risk exposure management.