According to Cointelegraph, gold weakened significantly this week. On Friday, gold prices fell further by 3.5% to $4,488 per ounce; on a weekly basis, the cumulative drop was about 11%, the largest weekly decline since 1983. The market believes that the ongoing geopolitical situation in the Middle East, combined with changes in macro expectations, is putting pressure on gold prices.
At the same time, investors' expectations for the Federal Reserve not to lower interest rates this year are rising. Federal Reserve Chairman Powell indicated that inflation may rise, further reinforcing the market's judgment on the continuation of a high-interest-rate environment, thus suppressing the appeal of non-yielding assets like gold.
It is reported that since February 28, gold prices have fallen by more than 15% cumulatively. Previously, in late January, gold prices surged to around $5,500 per ounce, but have significantly retreated recently, and there is more divergence in the market regarding gold's 'safe-haven asset' attributes.
