Gold Prices Drop from Record High: 5 Reasons Behind the Plunge

• Gold prices have fallen to around $4,580 per ounce from a record high of $4,643, showing signs of fatigue after a continuous rally.
• Strong US economic data, including higher retail sales and PPI, suggests the Federal Reserve may keep interest rates elevated for longer, reducing gold's appeal as a non-interest-bearing asset.
• Expectations for Fed rate cuts have been pushed back to mid-2026 by investment banks like Morgan Stanley, further pressuring gold.
• Easing tensions in Iran, following statements from US President Donald Trump, have reduced demand for safe-haven assets, contributing to the price drop.
• Despite the recent dip, gold's technical indicators suggest a bullish trend in the long term, with current movements possibly being a consolidation phase.

Why It Matters: Gold prices dipped due to strong US economy, delayed Fed rate cuts, and easing geopolitical tensions.