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🏆Weekly Gold (XAUUSD) & Precious Metals Take a Sharp Hit – What’s Driving the Drop?

Gold spot (XAU/USD) just tumbled 3.29% to $4,327.885, hitting a fresh 1 week low and locking in its first weekly decline in recent weeks. Silver, platinum and palladium are also deep in the red, with silver touching its lowest level in 1.75 months.

Now all pressured by a resurgent US dollar and shifting Fed expectations.

The trigger came from the latest US jobs data.

The US economy added 172,000 jobs last month, beating market estimates.

Stronger hiring fuels bets that the Federal Reserve will keep policy tight. The current markets now price a 72% chance of a rate hike as soon as December.

Higher interest rates and rising global bond yields make non‑yielding precious metals less attractive, while the US Dollar Index surged to its own 1.75‑month high, further weighing on metals priced in USD.

🔷Looking at the charts:

🟢On the 4‑hour timeframe, gold has broken firmly below its Bollinger Bands lower band, with RSI near oversold territory at ~29, showing extreme short‑term selling pressure.

🟢On the daily chart, the metal has fallen well below its 20‑period moving average, confirming the shift from its earlier uptrend into a sharp pullback.

For now, Fed policy and dollar strength remain the main drivers. Any further hot inflation or jobs data could extend losses, while softer numbers may offer a temporary bounce.

🔷Next Week: Key Economic Data to Watch

Wednesday: U.S. CPI Inflation Report & FOMC Economic Projections

Thursday: U.S. PPI

Friday: Preliminary U.S. Consumer Sentiment

🔷 The Verdict

Strong Bearish bias. The complete technical breakdown and macroeconomic paradigm shift favor aggressive selling on any minor relief bounce. Bulls are completely out of options unless they can magically reclaim $4,450. 

Not financial advice. Practice strict risk management. Do your DD😌.