Gold slides as investors await Fed’s policy direction

Gold prices dropped over 2 % to $3,980 per ounce as investors reduced hedge exposure ahead of the Federal Reserve’s upcoming interest-rate decision. The pullback follows a broader rally in equities and a strengthening U.S. dollar. Traders said profit-taking and easing geopolitical tensions contributed to the decline. Analysts view the drop as temporary, noting that central-bank buying and long-term inflation expectations still underpin bullion demand. The next support zone is seen near $3,950 if risk sentiment continues improving.