Gold Price Drops Below $4,600 Amid Hawkish Interest-Rate Outlook
Gold's price has been under pressure in recent days after a sharp sell-off at the end of August, causing it to drop below $4,600. Despite geopolitical tensions and higher oil prices, which are normally supportive factors for gold, its price is highly sensitive to real yields, the US dollar, and expected Federal Reserve policy.
The current market setup is characterized by a short-term correction within a longer-term uptrend, with gold still delivering substantial gains over a horizon of months. The immediate pressure on gold comes from a more hawkish interest-rate outlook, which has pushed rate policy back into focus after comments from Federal Reserve Chair Kevin Warsh at Jackson Hole.
A breakdown below $4,400 would suggest that sellers remain in control and could expose the next support zone around $4,350. Conversely, a recovery above $4,472 would show that buyers are absorbing the sell-off. The stronger confirmation level is the $4,500-$4,550 area, where the recent decline accelerated.