Gold Prices Plummet Below $4,500 Amid Strong Dollar and Rising Oil

Gold prices have been on a downward trend since Friday, breaking below the key psychological level of $4,500 per ounce. The decline was driven by a combination of factors, including a strong US dollar and rising oil prices.

The strengthening US dollar makes gold more expensive for buyers in other currencies, while higher energy costs fan inflation fears and push traders to price in the risk of tighter policy rather than imminent cuts.

According to analysts, if the Federal Reserve leans more hawkish, bullion could spend extended time below $4,500 before any renewed push toward the $4,700 to $5,000 band. This development could have implications for crypto traders, as the record-breaking gold surge above $4,900 per ounce was accompanied by a powerful rally in Bitcoin.