Gold Price Plunges on Hawkish Fed, Strong USD, Breaks Key Levels

Gold price slid sharply after the latest FOMC minutes signaled a more hawkish stance, keeping the market focused on “higher for longer.” Rate-cut expectations were pushed back, and the odds of a hike rose (CME FedWatch). Real yields also climbed, raising the opportunity cost of holding gold, which pays no yield. At the same time, geopolitical stress did not deliver a durable safe-haven bid for gold. Instead, it supported the US dollar (DXY up about 2.1%) and US Treasuries, pressuring dollar-priced bullion. Trading activity reportedly rose during the sell-off, and SPDR Gold Shares (GLD) saw net outflows. Technicals deteriorated: the $4,550 support level broke on heavy volume. Traders now watch the $4,450–$4,480 zone (including the 100-day moving average). A further breakdown could expose around $4,300, though the weekly uptrend still hints this may be a correction. Next catalysts are US PCE inflation and further Fed guidance, which will likely determine whether the gold price sell-off extends or stabilizes. For crypto traders, the key read-through is that firmer USD and higher real yields typically tighten liquidity and can pressure risk appetite.