Gold Plummets Below $4K Amid Inflation Fears

Spot gold prices fell below $4,000 an ounce as strong U.S. economic data and persistent inflation reinforced expectations for further Federal Reserve interest rate hikes. Stronger-than-expected GDP growth of 3.4% annually demonstrated resilient domestic demand despite elevated borrowing costs, while the personal consumption expenditures price index saw annual inflation accelerate to 3.6%. Although renewed diplomatic efforts involving Washington and Tehran reduced immediate fears of Middle East escalation, rising energy prices continued to weigh on precious metals. Spot gold declined 0.7% to $3,992.46 an ounce by Friday evening, marking the start of its second consecutive monthly loss as investors prioritized tighter monetary policy over safe-haven assets.