19.03.202613:03:10UTC+00Gold Plunges 5%

Gold plunged more than 5% to $4,560 per ounce on Thursday, marking its seventh consecutive decline and the lowest level since early January. The drop came as investors recalibrated interest rate expectations in response to a series of hawkish central bank decisions and surging energy prices driven by the escalating war involving Iran. The US Federal Reserve left rates unchanged, citing uncertainty over the economic impact of the Iran conflict and ongoing inflation pressures. Officials indicated there would be no rate cuts until inflation shows a clear and sustained easing, with Fed Chair Jerome Powell acknowledging that another rate hike remains possible, though unlikely in the near term. In Japan, Bank of Japan Governor Kazuo Ueda suggested a potential rate increase as early as April, while the Bank of England unanimously kept rates on hold but adopted a more hawkish tone than markets had anticipated. As a result, traders have pushed back expectations for Fed rate cuts to 2027 and are now pricing in two BoE hikes this year, further eroding gold’s appeal.