The precious metal’s plunge was intensified by technical selling as gold tumbled below the $1,800 and came close to testing critical support at $1,770-60.
“Over time, these things driving up inflation will be temporary … The experience with lumber prices is illustrative of this.
“We also got a shift for 2022 but not enough to change the median, with seven now seeing a hike next year vs.
“‘Transitory’ and ‘hikes’ don’t mix,” said strategists at TD Securities.
“If inflation turns out to be truly transitory, the Fed should be happy to walk the hiking signals back,” they said.
After all, gold had already fallen in recent days in anticipation of a possible change in direction on the part of the Fed,” said Commerzbank analyst Carsten Fritsch.