Overview
- Global bullion prices slid sharply on Wednesday as the U.S. dollar climbed to its highest level in over a year and markets sharply repriced the chance of Fed rate hikes for later this year.
- Spot gold tested and briefly broke the $4,000 per ounce level while silver plunged in percentage terms and posted steep one‑day drops in India, Pakistan and the UAE.
- A technology‑led equity selloff amplified the move by forcing cross‑asset liquidations, which added mechanical selling pressure on leveraged gold positions and ETFs.
- Official central‑bank buying and Bank of America’s June 22 note arguing miners are trading below implied asset values provide a longer‑term support case and a potential buying angle in mining stocks.
- Traders are focused on Thursday’s U.S. Personal Consumption Expenditures inflation reading for direction, because a hotter or cooler print could confirm or reverse the recent repricing of Fed policy.