Gold Falls Nearly 3% as Rate-Hike Bets Rise

Gold’s sharp reversal has shifted attention from new highs to whether the decline is temporary or signals a longer downturn. World Gold Council research points to three historical recovery signals: gold trading well below its 200-day average, a sharp rise in the U.S. dollar, and broader economic conditions that may indicate the sell-off is nearing a turn. Another account explains the pressure on gold: persistent inflation can prompt expectations of higher interest rates, raising real yields on competing assets and making non-yielding bullion less attractive. The volatility also underscores the value of judging forecasts against fixed targets and deadlines; criticism of Gerald Celente’s gold call centers on its target being revised rather than assessed against the original year-end deadline.