SPDR Gold Shares (GLD) fell sharply following the Federal Reserve's latest policy announcement. The central bank adopted a cautious wait-and-see approach. This stance eliminated market expectations for near-term interest rate cuts previously anticipated for early 2026.
A strengthening U.S. dollar and rising Treasury yields increased the opportunity cost of holding gold. Institutional investors responded with large-scale repositioning and outflows from gold-backed ETFs. These movements triggered compounding selling pressure. Gold subsequently recorded one of its worst weekly losses in years.