Gold prices tumbled late Friday and extended losses into Saturday, putting the metal on course for its steepest weekly decline in more than four decades, as a stronger US dollar and escalating tensions in the Middle East weighed heavily on global sentiment.

The comparison to 1983 reflects the magnitude of the سقوط, not price levels. A weekly decline of around 10% is exceptionally rare, prompting traders to draw parallels with the last comparable سقوط over 40 years ago.

In the past 24 hours, gold futures dropped 1% to $4,570 per ounce, while spot gold slipped 0.4% to $4,560.45 during afternoon trading, according to Yahoo Finance. On a weekly basis, bullion has fallen करीब 10%, extending a multi-week losing streak.

The sell-off comes as expectations shift around the Federal Reserve, which has warned inflation could remain elevated. Markets are increasingly pricing in the possibility of further rate hikes, with some traders anticipating rates could rise significantly by October 2026.

Typically seen as a hedge against inflation, gold has struggled as higher interest rate expectations increase the attractiveness of yield-bearing assets. A stronger dollar has also made the metal more expensive for international buyers, further dampening demand.

Investor sentiment has also weakened due to the intensifying Middle East conflict, with traders opting to reduce exposure rather than build new positions. Despite ongoing geopolitical risks, market participants appear to be waiting for clearer signals before returning to bullion.