Gold Latest Key News (Main Cause of This Plunge)

Recently, gold has experienced a continuous sharp decline, with core bearish news erupting in concentration, completely reversing the previous bullish pattern. First, hawkish expectations from the Federal Reserve have intensified, with U.S. employment and inflation data remaining strong, leading the market to cancel expectations for rate cuts this year and even bet on rate hikes. The U.S. dollar and U.S. Treasury yields have risen simultaneously, significantly increasing the holding cost of non-yielding gold, triggering concentrated selling pressure from institutional longs.

Secondly, geopolitical risks in the Middle East have fully cooled down, with regional conflicts easing and market risk appetite rapidly retreating. The previous risk premium on gold has completely dissipated, serving as a major driver of this plunge.

At the same time, domestic precious metals regulation has tightened, with multiple banks raising trading margins and restricting new positions, while some banks gradually shut down personal precious metals businesses. This forced speculative longs on exchanges to cut losses in a concentrated manner, amplifying the downward momentum.

The only supporting positive factor is the continued gold purchases by central banks globally, with physical demand holding the floor for gold prices and preventing a unilateral crash. However, this cannot reverse the short-term downtrend.

In the short term, the market is highly focused on the U.S. PCE inflation data. If the data remains strong, it will further reinforce rate hike expectations, and gold prices will continue to weaken. If the data cools, there may be a rebound from oversold conditions, but it will be merely a corrective move, with the medium-term bearish pattern unchanged.$XAUT $BTC #BTC下探60000美元关键关口