Gold Falls from $2,940 Peak Amid Fed’s Hawkish Stance

Gold fell below $2,900 per ounce on Wednesday, extending losses after hitting a record $2,940. The drop followed Fed signals that rate cuts aren’t imminent, shifting focus to US inflation data. While inflation hedging supports gold, the Fed’s stance limits its appeal. Safe-haven demand remains strong amid Trump’s tariffs, trade war fears, and geopolitical tensions, with Israel threatening to end the Gaza ceasefire. Dovish central banks and rising gold purchases also provide support, while India’s gold leasing rates hit record highs.

Technically, the first resistance level will be 2949 level. In case of this level’s breach, the next levels to watch would be 2975 and 3000. On the downside, 2885 will be the first support level. 2830 and 2760 are the next levels to monitor if the first support level is breached.