Gold’s drop below its 200-day moving average signals weakening momentum amid higher rate expectations and a stronger USD.
Gold prices fell below their 200-day moving average for the first time since October 2023, trading under $4,300 per ounce. The decline marks a more than 20% drop from January’s record high of $5,600, pushing gold into bear market territory.
The move follows a stronger-than-expected U.S. jobs report, which fueled expectations of a Federal Reserve rate hike. The U.S. Dollar Index (DXY) also climbed above 100, pressuring risk assets. Gold’s rally from below $2,000 in October 2023 to $5,600 in January was driven by concerns over fiat currency debasement.
Meanwhile, the Bitcoin-to-gold ratio rose 3% in the past 24 hours, reflecting shifting investor sentiment amid gold’s technical breakdown.