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Pro News Flash: Gold Spooked by Fedโ€™s hawkish stance

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Gold pulls back as the Fedโ€™s hawkish tone shakes market confidence. ๐Ÿ“‰โœจ Despite expectations for policy easing after the December FOMC meeting, Jerome Powell is likely to lean hawkish in his remarks and thatโ€™s putting pressure on precious metals.

๐Ÿป Bears are eyeing a deeper correction, with some looking for gold to slip below $4,000 as momentum in the easing cycle fades. Derivatives markets have already scaled back forecasts from three rate cuts in 2026 to just two.

๐ŸŒ Meanwhile, goldโ€™s explosive 60% rally this year was sparked by institutional safe-haven buying after major US tariffs and later fueled by retail investors โ€” tying gold more closely to risk assets.

๐Ÿ“ˆ Demand remains strong from ETF buyers in China and India, with global precious-metal ETF reserves hitting a record 3,932 tonnes after adding more than 700 tonnes in 2025.

๐Ÿ‡จ๐Ÿ‡ณ The peoples bank of China has now increased its gold reserves for 13 straight months โ€“ but potential progress in Ukraine peace talks could slow or reverse this trend.

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