$XAU recently suffered huge losses, falling from a historical peak of $5,608 to a new low of about $4,586. This sharp drop of $1,000+ confused many, especially after the metal looked unstoppable just last week. The sell-off wiped out weeks of gains in an instant, leaving the chart quite battered as it fluctuated around $4,700.

It seems that "safe haven" trading hit a wall as the dollar began to show its strength again.

With new discussions about the Fed chair and higher margins, traders appear to have decided it was time to withdraw funds.

To be honest, this is a classic "stairs up, elevator down" scenario that has every gold enthusiast watching their screens closely. We will have to see if this $4,500-$4,600 zone holds or if the floor will drop even further.

$XAU

XAUUSDT

Perp

4,943.21

+5.82%