Gold Futures Tumble Below $2,300 as Traders Brace for Fed’s Hawkish Pivot – by Gary Wagner (Kitco New – April 30, 2024)

Gold futures prices plummeted on Tuesday, dipping below the crucial $2,300 per ounce level, as traders braced for a potential hawkish shift from the Federal Reserve in its upcoming policy decision.

The precious metal, often viewed as a hedge against inflation, came under intense selling pressure amid concerns that the central bank could strike a more aggressive tone on future rate hikes.

As of 5:15 PM EDT, gold futures for the most active June contract traded $60.50 lower, or 2.57% down, settling at $2,297.20 per ounce. The sharp decline in prices reflects genuine apprehension among market participants that the Federal Open Market Committee (FOMC) meeting might conclude with a notable change in language regarding inflation and monetary policy.

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