Gold prices drop to under $4,400 after central bank demand wanes and the dollar rallies on geopolitical tensions.
Gold prices have fallen 22% from their late-January high of nearly $5,600, trading below $4,400 as demand softens. The decline follows a 72% rally in 2025, driven by central banks diversifying reserves away from the dollar after geopolitical shifts in 2022.
The recent pullback coincides with a 3% rise in the U.S. dollar index since late February, when conflict in the Persian Gulf escalated. Gold, priced in dollars, typically moves inversely to the currency. Inflation pressures from higher fuel costs have also weighed on sentiment.
Investors are assessing whether the dip presents a buying opportunity amid shifting macroeconomic conditions.