Why Gold Fell Sharply, and Is the Downward Move Over?

Gold prices recently experienced a sharp decline, driven by a combination of factors including a hawkish stance from the Federal Reserve, rising interest rates, and overall market volatility. The strengthening US dollar and expectations of tighter monetary policy put downward pressure on gold, which traditionally performs well in low-interest-rate environments. As the Fed signals a more aggressive approach to combat inflation, investors have shifted their focus to higher-yielding assets, reducing demand for gold. However, the key question is whether this downward trend is over or if more declines are ahead. Analysts are closely monitoring economic indicators, central bank policies, and market sentiment to determine if gold will stabilize or continue its downward movement.14