economy
March 21, 2026
BIG DROP IN GOLD PRICE! This is the main reason
Economic catastrophe,
TL;DR
- Gold price fell two percent to around $4,570 per ounce.
- On track for the largest weekly drop since 1983.
- Middle East tensions increased energy prices and reduced hopes for interest rate cuts.
- Report of Pentagon deploying warships and marines led traders to price in a 50% chance of a Fed rate hike by October.
- Concerns about sustained inflation are driving the market.
- Gold has seen weekly declines since US-Israeli attacks on Iran last month.
- Factors contributing to the decline include rising government bond yields, a stronger dollar, and profit-taking.
- Central banks, including the Fed, ECB, BoE, and BoJ, have kept rates steady but signaled willingness to tighten policy further if inflation persists.