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Commerzbank analyst Carsten Fritsch highlights that gold briefly fell below $4,000 per troy ounce before rebounding due to bargain buying. However, the precious metal remains on track for its largest quarterly decline in 13 years and a significant monthly drop. The analysis attributes this trend to the Federal Reserve's policy shifts, which have reduced gold's appeal as an inflation hedge amid expectations of higher interest rates. This development signals a shift in market dynamics, with investors prioritizing yield-bearing assets over non-yielding gold. The report underscores the importance of monitoring central bank policies and inflation expectations, which could further influence gold's trajectory. For traders, the focus is on whether the Fed will maintain its hawkish stance or pivot toward easing, which could reverse the current downward momentum. Market participants should also watch for technical support levels around $4,000 to assess potential short-term rebounds.
