Gold prices plunge as market enters ‘dangerous phase’

Group 1: Market Reactions and Trends - Investors reacted negatively to Microsoft's earnings results, leading to a decline in all three major US indexes, with Microsoft's stock plunging 12% after announcing a 66% increase in spending on data centers [4][13][21] - The tech-heavy Nasdaq Composite fell 2% to 23,352 points, driven by losses in major tech stocks, while the S&P 500 and Dow Jones Industrial Average also experienced declines [23][21] - Bitcoin has seen significant losses, dropping 5% to $85,225, marking a total decline of over 16% in the past year [19][3] Group 2: Commodity Market Dynamics - Gold prices surged past $5,500 an ounce for the first time, reflecting a nearly 100% increase over the past year, while silver prices skyrocketed by 285% during the same period [6][51] - The demand for safe-haven assets like gold and silver has increased due to geopolitical uncertainties and concerns over the weakening US dollar, which recently fell to a four-year low [9][50] - Analysts warn that the current surge in precious metals may be entering a "dangerous phase," as fear of missing out could drive prices beyond justified levels [7][51][52] Group 3: Economic Indicators and Trade Deficit - The US trade deficit nearly doubled in November to $56.8 billion, up from $29.2 billion in October, with a significant portion attributed to imports from the European Union facing tariffs [16][35] - The Federal Reserve's decision to hold interest rates steady has contributed to market volatility, with concerns about rising inflation and the impact of tariffs on trade dynamics [64][35] - Oil prices have reached a seven-month high, driven by geopolitical tensions, particularly threats from the US against Iran, with Brent crude rising over 5% to exceed $71 a barrel [17][30]