Gold Prices Tumble as Markets Price More Fed Hikes

Gold prices are plummeting as markets anticipate further interest rate hikes from the Federal Reserve. The metal is currently sinking, despite central banks in China, Asia, and emerging market economies secretly stockpiling bullion.

Nicky Shiels, Head of Research and Metals Strategy at MKS Pamp, noted that gold's short-term prospects look bleak due to rising real yields and oil prices. However, Shiels believes the long-term outlook for gold remains bullish.

The shift in market sentiment has led retail investors to abandon gold for speculative AI stocks. This trend is being driven by expectations of further Fed hikes, which are causing markets to price in higher interest rates.