Gold plunges due to prospects of central bank tightening, weakening the basis for currency devaluation trades

BlockBeats news, on March 19, gold prices plummeted 7% on Thursday, marking the seventh consecutive trading day of decline. Due to the Middle East conflict leading to rising energy prices and triggering inflation concerns, the market expects major central banks to maintain high interest rates. Daniel Ghali, a commodity strategist at TD Securities, stated: "Currently, gold has become a commonly held investment among institutional investors, thanks to the currency depreciation trades over the past year. However, the foundation for this trade is now weakening. In the short term, we still believe there is downside risk in the market. Gold still has significant room to fall, but at the same time, it can maintain the support formed by its bullish trend during the bull market period."