Gold Plummets Below $4,200 on US-Iran Tensions, Hawkish Rate Bets
Gold extends losses below the 200-day SMA, hitting a fresh low since March 23 as rising geopolitical tensions and hawkish rate expectations ahead of US CPI weigh on the precious metal.
Gold (XAU/USD) extended its recent breakdown momentum during the Asian session, falling below the technically significant 200-day Simple Moving Average. The metal dropped to a fresh low since March 23, trading further under the $4,200 mark.
The decline was driven by rising US-Iran tensions, which spurred hawkish rate bets ahead of the upcoming US Consumer Price Index (CPI) release. Traders are pricing in a more aggressive Federal Reserve stance, putting pressure on non-yielding assets like gold.
Key technical levels: The breach of the 200-day SMA signals potential further downside. The next support zone may be around previous lows from late March.
Source: FXStreet Forex News