Hawkish Fed Causes Gold to Slide Below $4,000
Gold prices came under significant pressure last week, with futures contracts falling by over 3%. The decline reflects growing investor concerns that the Federal Reserve may keep monetary policy restrictive for longer than previously anticipated, reducing the appeal of precious metals. The latest drop in gold coincided with a strengthening U.S. dollar and rising Treasury yields, both of which tend to create headwinds for bullion. Market participants are also closely watching the upcoming release of the Personal Consumption Expenditures index, which is expected to provide further insight into whether inflationary pressures remain persistent despite recent efforts to cool price growth. Investor sentiment toward gold weakened after Federal Reserve Chairman Kevin Warsh reiterated that controlling inflation remains the central bank’s top priority.…