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Gold Drops 2% as Dollar Rises, Fed Holds Rates

5/4/2026

34 7 Full Breakdown

Summary

Story summary

On Monday, May 4 2026, United States spot gold fell nearly 2% to $4,526.88 per ounce.
A stronger U.S. dollar raised bullion costs, pushing June gold futures down 2.3% to $4,537.90.
The Federal Reserve (Fed) left its policy rate at 3.5%-3.75% and signaled that rates could stay higher.
Analysts said gold finds support near $4,200 and suggested buying around $4,600 per ounce.

History

Historical Context

Facing balance-of-payments deficits and a $35-per-ounce gold peg, President Richard Nixon announced on 15 August 1971 that the United States would close the gold window, ending Bretton Woods convertibility. U.S. gold reserves dropped to about 10,000 metric tons, and the official dollar-gold link vanished, paving the way for the floating-rate era that still shapes today’s $4,527 gold price.

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Story summary

On Monday, May 4 2026, United States spot gold fell nearly 2% to $4,526.88 per ounce.
A stronger U.S. dollar raised bullion costs, pushing June gold futures down 2.3% to $4,537.90.
The Federal Reserve (Fed) left its policy rate at 3.5%-3.75% and signaled that rates could stay higher.
Analysts said gold finds support near $4,200 and suggested buying around $4,600 per ounce.

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