Gold Falls 4% as Traders Price Three Fed Rate Hikes Before PCE Data
Gold prices have dropped 4% since the Federal Reserve meeting as traders price in three rate hikes, with bears targeting key support at $3,886 ahead of PCE data [1].
Gold prices have fallen 4% since the Federal Reserve meeting as traders price in three rate hikes, putting the $3,886 support level in focus ahead of Friday's Personal Consumption Expenditures data [1]. The precious metal recorded its largest weekly decline in nearly three months in early June, falling over 4% on stronger-than-expected non-farm payrolls, increased rate hike expectations, rising Treasury yields, and a stronger US dollar [2].
The selloff marks a shift from earlier this year when gold traded near record highs on inflation hedging demand. Market participants have repriced Fed policy expectations following labor market data that showed continued resilience, leading traders to anticipate a more aggressive tightening path than previously forecast.
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