Gold Falls to Multi-Month Low Near $4,050 as Hot US Inflation Fuels Fed Hawkish Bets

Gold (XAU/USD) dropped to approximately $4,050 in early Asian trading, marking its lowest level since November 2025. The decline follows the release of hotter-than-expected US inflation data, which has strengthened bets that the Federal Reserve will maintain a hawkish policy stance.

The stronger inflation reading reduces the likelihood of near-term rate cuts, boosting the US dollar and Treasury yields. Higher yields increase the opportunity cost of holding non-yielding gold, putting pressure on the precious metal. Traders are now pricing in a greater chance of further tightening, which could keep gold under pressure in the short term.

Technical levels to watch: A break below $4,050 may open the door to the next support zone around $4,000, while resistance is seen near $4,100 and $4,150.