Gold Falls Below $4,200 in Single-Day Drop of Over $100: Why Are Gold Prices Plunging? - tradingkey.com

AI desk brief

Spot gold fell below $4,200 intraday to $4,179.42 on Sept. 28, extending a pullback from around $4,700 at the end of August as short-term selling pressure persisted. The decline was driven by higher oil prices from Middle East energy supply tensions and hawkish Fed commentary, which lifted expectations for a 25 bp October hike to 68.1% and pushed U.S. yields and the dollar higher.

The near-term setup stays bearish unless incoming U.S. inflation/employment data or Fed remarks reverse rate expectations. Higher real and nominal yields are raising the opportunity cost of holding non-yielding bullion, keeping gold vulnerable to further downside.