Gold price extended its decline on Tuesday, sliding to $4,435.66 before recovering to $4,450.90, after hawkish comments from Minneapolis Fed President Neel Kashkari caught markets off guard. Kashkari warned yesterday that the central bank could embark on 'a series of' rate increases should Middle East tensions continue to fuel inflation. The statement injected fresh strength into the US dollar and sent gold crashing through multiple support levels. With the American session now in full swing, liquidity is surging and the metal faces a critical test at the $4,435 zone. Whether buyers can defend this floor or bears force a deeper washout toward $4,420 will define the near-term direction.
Gold Analysis