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

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

With new talks about the Fed Chairman and higher margins, traders seem to have decided that it was time to pull funds.

Honestly, this is a classic "staircase up, elevator down" scenario that makes every gold enthusiast keep a close eye on their screens. We will have to see if this $4,500-$4,600 zone holds or if the floor will drop even further.

$XAU

XAU
XAUUSDT
4,921.22
-0.27%