Gold prices have broken below the $4,000 per ounce threshold, marking a significant technical breakdown in the precious metals market.
The decline represents a drop of more than 30% from the record high of nearly $5,600, signaling a sharp reversal in sentiment for the asset class.
This move below the critical support level, not seen since November, underscores the growing pressure on bullion as macroeconomic headwinds intensify.
The correction reflects a fundamental shift in investor behavior.
While geopolitical tensions have traditionally driven safe-haven demand, the current market dynamic is increasingly dominated by interest-rate expectations.
Markets are now pricing in the possibility of another Federal Reserve rate hike this year, despite mixed projections from policymakers.