$4000 Level Tested: Gold Price in Flux Amid Hawkish Fed and Central Bank Demand

The gold price is currently trading at $4,029 after experiencing a decline of 1.17% on the day and 25.4% off its six-month highs.

This rare tug-of-war between safe-haven demand and hawkish Fed repricing has left investors uncertain about the metal's future.

Despite technical signals flashing 'Strong Sell' across daily and weekly timeframes, central bank demand is building an unexpected floor for gold, with Goldman Sachs estimating purchases at 81 tonnes in May alone, nearly five times the pre-2022 average.