Gold sinks below $4,000 as traders eye Fed rates

Gold has dropped below the $4,000 mark, marking a significant decline and entering bear market territory for the first time since November 2025. This downturn is largely driven by anticipated increases in Federal Reserve interest rates and a stronger U.S. dollar, which makes gold less attractive to investors. Despite this, local traders believe the drop might be temporary, suggesting that market dynamics could shift quickly. This shift is crucial as gold's value is often seen as a hedge against economic uncertainty.