Gold ETF AAAU Drops Nearly 7% as Central Banks Sell, SocGen Keeps $6,000 Target
AAAU plunged with gold sliding nearly 7% and silver about 8% over 24 hours as central bank liquidations intensified and Iran war fears rose. Societe Generale trimmed its gold holdings but upheld a $6,000 spot price target even as technical indicators flagged gold’s most oversold level since 2023.
1. Sharp Price Decline
Over the past 24 hours, gold plunged nearly 7% and silver fell about 8%, driving AAAU to significant losses as central banks accelerated reserve liquidations and geopolitical tensions in the Middle East intensified selling pressure.
2. Technical Oversold Conditions
Gold hit its most oversold reading since 2023 on the relative strength index and approached a long-term support level near $1,900 per ounce, suggesting a potential technical rebound or further downside if support fails.
3. Societe Generale Strategy
Societe Generale cut its gold exposure due to rising volatility but maintained a $6,000 spot price target, signaling confidence in a long-term rally despite short-term market distress.