Gold Prices Plunge as Rate Cut Hopes Evaporate

The gold market is experiencing a severe downturn as prices collapse following a recent rally toward record highs. This dramatic reversal stems from shifting market expectations regarding U.S. monetary policy, with earlier optimism about interest rate cuts rapidly dissipating.

Investor psychology has undergone a significant transformation. What began as widespread anticipation of imminent Federal Reserve rate cuts has now reversed into a sell-off frenzy. The shift became particularly evident on Friday when market participants began pricing in a more hawkish monetary policy stance.

The strengthening U.S. dollar has compounded the pressure on the precious metal, which pays no interest. This dual pressure of rising yields and dollar strength Read more...