Global sell-off rattles markets as gold, oil, and cryptocurrencies tumble

Financial markets faced a downturn on Thursday, with declines across multiple assets. Germany's DAX index dropped 0.5%, closing at 24,491 points, while the euro weakened slightly against the dollar. The broader sell-off also hit gold, oil, and cryptocurrencies, adding to investor concerns.

The DAX's fall came despite recent positive trends, including 12 straight days of gains up to January 14, 2026. Over the long term, the index has delivered a 233.36% return since July 2011, supported by economic improvements like falling inflation—hitting a 15-month low of 1.8% in December 2025 before rising to 2.1% in January 2026. Yet, Thursday's decline was driven by sell-offs in major stocks, particularly the so-called 'Magnificent Seven,' even as industrial orders reached a two-year high.

The German government's special economic fund appears to be bolstering growth, but market sentiment remained cautious. Oil prices fell sharply, with North Sea Brent crude dropping 3% to $67.35 per barrel. Gold also tumbled, losing 2.2% to trade at $4,857 per ounce (€1,32.45 per gram). Meanwhile, the euro softened to $1.1789 (€0.8482 per dollar), reflecting broader uncertainty.

Riskier assets, including cryptocurrencies, faced steep losses, triggering a wave of liquidations. Analysts now question whether the DAX can push past the 25,000-point threshold soon, given the current volatility.

Thursday's market pullback highlights lingering instability, despite Germany's economic progress. With oil, gold, and digital assets all under pressure, investors are watching closely for signs of recovery. The DAX's struggle to hold gains suggests further challenges ahead for equities.