Gold Price Slides to $4,650 as Fed Rate Cut Bets Tumble
Gold price slid further on Tuesday, with XAU/USD testing fresh lows near $4,650 per troy ounce. The drop reflects a repricing of Fed policy expectations: markets now see a later, less likely early rate cut.
The key driver was weaker-than-needed hopes for easing. Stronger employment data and sticky inflation reduced bets on a quarter-point cut at the May meeting. CME FedWatch showed the probability fell below 30%, from over 60% a month earlier. That pushed the U.S. Dollar Index (DXY) above 104.50 to a three-week high and lifted bond yields, increasing the opportunity cost of holding non-yielding Gold price.
Technically, Gold price broke below the $4,700 support zone. $4,650 is the next near-term support, aligned with the 50-day simple moving average. A decisive close under it could expose $4,580 (100-day moving average). Resistance is seen around $4,720, then $4,780. Daily RSI slipped below 50, suggesting bearish momentum.
Broader markets showed a similar macro sensitivity. The 10-year Treasury yield rose to about 4.35%. Silver fell about 2.5% to $29.80/oz, while platinum and palladium also declined.
Traders/investors are likely to watch upcoming U.S. data (notably CPI and retail sales) for clues on the Fed path. If inflation cools and growth softens, the downside in Gold price could stabilize; otherwise, the near-term trend remains vulnerable.
Neutral
This is a macro-driven risk re-pricing story rather than a crypto-native catalyst. A stronger USD and higher bond yields typically tighten global liquidity conditions, which can pressure risk assets (including crypto) in the short run. That said, the article is specifically about Gold price and precious metals (XAU/USD, silver), so the direct linkage to crypto is more indirect—via rates, USD strength, and overall risk sentiment.
In the short term, traders may become more cautious when Fed cut expectations fade, similar to past periods when “higher-for-longer” guidance or hotter inflation data triggered USD strength and weighed on high-beta assets. In the medium to long term, crypto often follows broader liquidity and real-rate dynamics; if upcoming data later supports earlier easing expectations, the narrative could flip, potentially benefiting both Gold price and crypto risk appetite.
Overall: bearish influence on metals and possibly risk sentiment, but without a direct policy or crypto market intervention signal, so the net effect on crypto is best categorized as neutral.