“Why did Gold Falled”📉
As we have seen $XAU (Gold) has experienced a significant pullback after a massive rally driven by geopolitical tensions, economic uncertainty, central bank buying, and earlier expectations of looser monetary policy.
Also a rebound in the USD makes dollar-denominated gold more expensive for non-US buyers, pressuring prices downward.
As President Trump’s selection of former FED Governor Kevin Warsh (known for hawkish on inflation and potentially less aggressive on rate cuts) claimed faers about Fed independence and reduced expectations for deep easing. This boosted Dollar and lowered gold’s appeal as a safe-haven hedge against policy uncertainty.
“Will Gold make a new All Time High📈 then When?”
FED rate cuts typically support Gold peices by weakening US Dollar and lowering yields on alternatives like Treasuries, as seen in late 2025 when easing spurred gains. Post-cuts surges occurred in prior cycles, though short-term pullbacks can follow if markets perceive cuts as less aggressive.
Markets and analysts anticipate a Fed funds rate cut in June 2026, with Goldman Sachs forecasting two 25-basis-point reductions in June and September, bringing rates to 3-3.25% from the current 3.5-3.75%.
J.P. Morgan and others see potential for further easing later in 2026, driven by softening labour data, through some like J.P. Morgan expect a pause or even hikes depending on inflation and growth.
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