The sharp decline in technology stocks ignites the "domino effect"! Gold suffers a bloodletting and falls below $4100, turning safe-haven assets into a liquidity blood bank.

Notice that the sell-off triggered by Wall Street tech stocks has led investors to reduce their gold holdings to offset losses in other areas of their portfolios, further widening the decline in gold prices. Spot gold fell below $4100 per ounce, down 1.7% from the previous trading day, marking the lowest closing price in two weeks. U.S. bonds rebounded on Tuesday, with a key dollar index rising 0.4%, making gold priced in U.S. currency more expensive for most buyers. Sell-off in tech stocks exacerbates gold decline Although gold is seen as a safe haven investment, during major cross-market sell-off periods, it often falls as it acts as a source of liquidity. Concerns about an overextended artificial intelligence-driven stock market rebound have weighed on Asian stocks on Wednesday. The sharp drop in tech stocks has added further pressure on gold, which was already suppressed by concerns that lingering inflation risks mean the Federal Reserve will raise interest rates. The hawkish tone adopted by new Fed Chair Kevin Wash has shocked investors and offset the positive impact of last week's signing of a temporary peace agreement between the U.S. and Iran. Higher borrowing costs are a negative factor for interest-free precious metals. As of the time of writing, spot gold has fallen by 0.8% to $4,083.77 per ounce. Silver fell by 1.1% to $60.86 per ounce. Platinum and palladium also experienced declines, while the Bloomberg Dollar Spot Index remained unchanged.