Gold Drops Nearly $100 in 15 Hours, What’s Driving It?

As I reviewed the market reaction following the FOMC’s July rate decision, one of the most striking moves came from gold. Prices fell sharply from around $3,320 to $3,272 in under 15 hours a nearly $50 decline that can’t be overlooked.

This move wasn’t about a surprise hike or a shock comment from Powell. It was about the market digesting the implications of a “higher-for-longer” stance. The Fed held rates at 4.50%, as expected, but the tone made it clear: they’re not in a rush to cut. And in an environment where real yields remain elevated and the dollar is gaining momentum, gold an asset with no yield faces natural headwinds.

What I find important here is the underlying driver: risk appetite. Equity markets remain firm, U.S. data continues to surprise to the upside, and investors are still chasing yield. As long as that narrative holds, there’s little reason for gold to rebound meaningfully in the short term.

Technically and structurally, the path of least resistance appears to be lower, with $3,200 as a probable near-term magnet. Of course, this doesn't mean we pick sides it means we stay data-driven, and stay adaptive to the next catalyst, whether that’s CPI, NFP, or Jackson Hole.

I'm a neutral to bearish into gold and looking for pullbacks around the $3.320 to be able to short with a better risk reward.

GOLD is Looking Interesting After FOMC

2025年7月31日