Gold Recovers from Four-Month Low as Dip-Buyers Emerge After Hawkish Fed Triggers Sharp Sell-Off

Gold prices stabilized around $4,500 per ounce, rebounding from a sharp March sell-off that saw the metal plunge nearly 18% from record highs. The correction was driven by a dramatic shift in Federal Reserve rate expectations, as surging oil prices fueled inflation fears. Hawkish sentiment, a stronger dollar, and rising Treasury yields initially overshadowed gold's safe-haven appeal amid Middle East tensions. However, bargain hunters stepped in at key technical support levels near $4,100, halting the slide. The market's focus now shifts to upcoming inflation data and central bank signals for direction, with long-term institutional forecasts remaining bullish despite the recent volatility.