Gold Prices Plunge as Interest Rates and Dollar Weigh

Gold prices have taken a hit as investors focus on rising interest rates and a strengthening US dollar, outweighing traditional safe-haven demand. The precious metal's value has dropped below its year-start levels, contrary to expectations given its strong performance in January when it saw its highest monthly increase on record.

The shift from higher interest rates to increased uncertainty is causing some investors to reevaluate their gold holdings. Despite this, central banks remain a key source of demand for gold, with 89% expecting global gold reserves to rise and a record 45% planning to boost their own reserves.

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