Gold Plunges 5% as Central Banks Turn Hawkish

2026-03-19 13:03 By Joana Ferreira 1 min. read

Gold crashed over 5% to $4,560 per ounce on Thursday, its seventh straight session of declines and the lowest since early January, as investors recalibrated rate expectations following a wave of hawkish central bank decisions and soaring energy prices amid the escalating Iran war.

The US Federal Reserve held rates steady, citing the uncertain economic fallout from the Iran conflict and persistent inflation risks.

Policymakers signaled no rate cuts until inflation clearly eases, with Fed Chair Jerome Powell acknowledging a hike remains possible, though unlikely for now.

Meanwhile, the European Central Bank, Bank of Japan, and Bank of England all maintained rates but adopted more hawkish tones, signaling tighter monetary policy ahead.

Markets now delay Fed easing expectations to 2027 and price in two ECB and BoE rate hikes this year, further dimming gold’s appeal.



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