Gold Prices Plummet as Fed Decision Looms: Commerzbank Slashes Forecast to $4,500

The gold market is experiencing pressure ahead of the US Federal Reserve's interest rate decision today at 9:00 PM. Despite a slight recovery to $4,032 after hitting its lowest level in a week at $4,010, spot gold remains cautious. Analysts emphasize that investors are not focused on energy prices, which have declined from last week's high of $100, but rather FED policies.

The 2-year US Treasury yield is rising towards 4.30%, its highest level since February 2025, and triggering outflows from non-yielding gold. Commerzbank has lowered its year-end spot gold forecast from $4,800 to $4,500, citing aggressive declines in prices despite interest rate risks and inflationary pressures.

The bank's analysts note that if inflation is brought under control, the path is open for gold to reach $5,000 by 2027. Spot gold has started the day at $4,010 with a loss of -1.17% from yesterday's close at $4,028. On the domestic front, spot gram gold began trading at 6,140 TL.