Gold Records Worst Weekly Drop in 43 Years as Fed Rate Cut Expectations Shift

Gold prices recorded a historic 9% decline last week, marking the precious metal's worst weekly performance in 43 years due to shifting Federal Reserve expectations for 2026. However, value buying near the 200-day Moving Average has recently sparked a technical rebound as bargain hunters entered the market at key support levels. Despite this bounce, traders are increasingly adopting a 'sell-the-rally' strategy following a broader shift into a bear market environment. The metal continues to decouple from escalating geopolitical tensions, failing to act as a safe haven even as oil prices rise due to global turmoil. Persistent liquidity outflows from gold-backed ETFs have further dampened sentiment, reflecting a significant shift in market dynamics. While the Fed's hawkish trajectory remains the primary driver, investors are closely monitoring whether the current technical support can withstand prevailing bearish pressure.