Gold Slumps as Fed Rate Hike Bets Intensify Market Volatility
Gold prices have dropped by 1.18% to $4,148 as expectations of further Federal Reserve rate hikes weigh on the asset. The metal remains below its key moving averages in short, medium, and long-term timeframes, indicating persistent downside momentum.
The recent decline is attributed to higher US interest rates and rising Treasury yields, which increase the cost of holding non-yielding assets like gold. Oil-driven inflation and geopolitical tensions, including President Trump's rejection of an Iranian proposal, have also intensified market volatility and uncertainty.
Technical analysis suggests that gold trades below major moving averages with bearish momentum, expected to range between $4,068 to $4,228. The Federal Reserve rate hike bets and geopolitical risks have reshaped safe-haven sentiment, making it less attractive for investors to hold gold.