Gold Tumbles Below $4,320 Amid Strong Dollar and Hawkish Fed Bets

Gold prices continued their downward trend on Tuesday, falling below $4,320 in European trading. This decline follows a rebound from last week's low, which was itself a response to a hawkish shift at Wednesday's Federal Reserve policy meeting.

The US Dollar Index held above 100.00, contributing to the pressure on gold prices. Bullion had initially held up despite this hawkish stance, but it has since struggled to extend gains as the dollar rally persisted.

From a technical perspective, rejection at $4,400 has kept focus on the neckline of an extended Head & Shoulders pattern. The Relative Strength Index remains below the 50 midline, and the Moving Average Convergence Divergence stays negative, pointing to rallies being capped.