Gold Plunges on Central Bank Tightening Outlook, Currency Devaluation Trade Thesis Erodes

BlockBeats News, March 19th - The price of gold plummeted by 7% on Thursday, marking the seventh consecutive day of decline. The Middle East conflict has caused energy prices to rise, triggering inflation concerns, and the market expects major central banks to maintain high interest rates. Daniel Ghali, a commodity strategist at TD Securities, said: "Currently, gold has become an investment widely held by institutional investors, benefiting from the momentum of currency debasement trades over the past year. However, the foundation of this trade is now weakening. In the short term, we still believe there is downward risk in the market. Gold still has significant downward potential, but at the same time, it can still maintain the support formed by the uptrend of the bull market period." (FXStreet)