GLD is trading 5.5% down today as spot gold retreats from $4,830/oz after the Federal Reserve signaled a more restrictive policy path than anticipated.
- The Fed maintained interest rates at 3.50%–3.75% on March 18, projecting zero to one rate cut for 2026 following a hotter-than-expected 0.7% monthly PPI increase in February.
- Persistent inflation fears, exacerbated by Middle East energy shocks, are weighing on non-yielding assets as hawkish bets gain momentum.
- Broader market weakness is amplifying the selloff, with the S&P 500 declining 0.73% as investors recalibrate expectations for the interest rate environment.