【Gold Price Trend】Gold Price Falls for Six Consecutive Days, Retreats to $4800 Level, Then Stabilizes Slightly

Gold prices have fallen for six consecutive days, marking the longest streak since late 2024. Energy prices surged, and Federal Reserve Chair Jerome Powell stated that rising energy costs will push up overall inflation. Spot gold briefly tested $4,800, dropping about 4% to a low of $4,806, the lowest in nearly a month and a half. The New York gold futures closed at $4,896.2, down 2.2%. On Thursday, spot gold stabilized, rising 0.6% to $4,847.

Powell emphasized that maintaining moderate tightening of interest rates is crucial. Traders have lowered expectations for rate cuts this year, which has led to continued increases in bond yields and the dollar exchange rate. The Fed kept interest rates unchanged and continued to forecast one rate cut this year, acknowledging increased uncertainty due to the escalation of the Middle East conflict. The committee stated they are “focused on the two sides of the dual mandate,” which are maximizing employment and maintaining price stability.

Nicky Shiels, head of metals strategy at MKS PAMP SA, said Powell’s comments were somewhat easing, though not quite hawkish, and emphasized the dual mandate of maintaining rate tightening over a longer period.

As the Iran conflict escalates, more energy supply risks emerge, leading to rising oil prices. Risk assets, including stocks, are being sold off, forcing some investors to sell gold to raise cash.

Ewa Manthey, commodities strategist at ING, said it appears to be a cross-asset reallocation. Oil prices reflect supply risks, while gold declines may be driven by profit-taking, broader unwinding amid risk asset sell-offs, a stronger dollar, and rising real yields.