Gold tumbles below $4,650 as inflation fears and liquidity squeeze weigh

💡 DMK Insight

Gold’s struggle near $4,640 is a warning sign for traders: inflation fears are back. With the US-Israeli conflict escalating, crude oil prices are spiking, which historically leads to increased inflation expectations. This dynamic puts pressure on gold, traditionally seen as a safe haven. If inflation continues to rise, we could see a shift in market sentiment that favors commodities over fiat currencies. Traders should keep an eye on the $4,600 support level; a break below could trigger further selling. Additionally, watch for how energy prices react—if they keep climbing, gold might not be the only asset under pressure. On the flip side, if geopolitical tensions ease or if there’s a shift in US monetary policy, gold could find a footing. But for now, the immediate sentiment leans bearish. Keep an eye on the daily chart for any signs of reversal or continued weakness, especially as we head into next week’s economic data releases.