Gold’s Rally Stalls as Rate Cut Hopes Diminish

The precious metals market witnessed a dramatic reversal on Friday as gold prices plunged sharply, erasing gains from earlier in the week. Growing skepticism about imminent interest rate reductions from the U.S. Federal Reserve triggered a massive sell-off in the traditionally safe-haven asset.

Dollar Strength Weighs on Bullion

Market expectations regarding U.S. monetary policy have undergone a significant shift. Key financial indicators now suggest a substantially lower probability of near-term rate cuts. This reassessment of the Fed’s policy trajectory has bolstered the U.S. dollar, creating challenging conditions for dollar-denominated gold.

A stronger greenback increases the cost of purchasing bullion for international investors, prompting widespread selling pressure. The intense Friday trading session wiped out the advances gold had accumulated over previous days within hours.

Weekly Performance Shows Market Divisions

Despite the severe end-of-week decline, gold managed to close the trading period with an overall gain. This contradictory outcome highlights the current market volatility and anxious investor sentiment.

Should investors sell immediately? Or is it worth buying Gold?

Key market developments include:
* Weekly gain: Over 2%
* Friday’s decline: More than 2% drop
* Primary catalyst: Uncertainty surrounding U.S. interest rate policy
* Counter-trend: Growing strategic interest in precious metals allocation

Technical Outlook Turns Bearish

Market analysts note that the technical picture has deteriorated following recent developments. The likelihood of further price declines in the coming week has increased as momentum has clearly shifted in favor of sellers.

A downward trend appears to be establishing itself. The critical question now becomes whether key support levels will hold or if selling pressure will drive prices toward new lows. Monetary policy remains the dominant factor influencing the precious metal’s short-term trajectory.