Gold experienced a significant drop on Thursday as traders reassessed the hawkish signals emerging from recent interest rate decisions by major global central banks. Although the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan all held rates steady, in line with market expectations, their overall policy tone leaned toward firmness, putting pressure on gold and other non-yielding assets.

Federal Reserve Chair Jerome Powell had previously indicated that some officials were prepared to consider raising interest rates if necessary. This stance exerted noticeable downward pressure on the gold market.

Meanwhile, the European Central Bank emphasized that inflation continues to pose a serious threat, with the Middle East conflict adding further uncertainty to the outlook. Markets have begun pricing in the possibility of two rate hikes by the ECB within the year.

At the Bank of England, all Monetary Policy Committee members voted unanimously to keep rates unchanged at 3.75%, contrary to analyst expectations that two members would support a rate cut. This suggests that dovish voices within the BOE have nearly disappeared. Should energy prices continue to fuel inflation, the BOE may even consider raising rates again in the future.

The Bank of Japan also sent further hawkish signals. Despite high energy prices weighing on the Japanese economy, the central bank stated it would discuss the possibility of a rate hike at its next meeting.

From a broader perspective, the consensus among major global central banks is clear: they are refocusing on inflation risks and signaling readiness to tighten policy further if needed. A higher interest rate environment is undoubtedly unfavorable for assets like gold and other precious metals that do not generate interest income.

Additionally, the potential abrupt end to the global rate-cutting cycle has dealt a blow to the core logic that previously supported gold's rise. One key driver behind the sustained increase in gold and other precious metals had been investor bets that central banks would continue cutting rates to support economic growth.

Now, geopolitical tensions are acting as a negative catalyst for the gold market. Although central banks continue to diversify reserves through gold purchases, short-term speculative funds are rapidly unwinding positions as risk appetite declines.

From a technical perspective, gold is currently attempting to break below the support zone between $4,660 and $4,680. A confirmed break below this level could see prices fall further toward the $4,400–$4,420 range. The Relative Strength Index (RSI) remains in neutral territory, suggesting that new catalysts could trigger additional downward momentum.

Silver also remains under pressure. As the gold-to-silver ratio approaches 65.00, silver prices touched new lows. It is worth noting that some traders are beginning to view this pullback as an opportunity to establish long positions at lower levels, which has helped silver rebound from intraday lows.

If silver falls below the $71 mark, the next support level lies in the $64–$65 range. A break below $64 could trigger a sharper decline.

Platinum has also weakened significantly amid the broad pullback in precious metals. At the same time, palladium fell about 2%, adding further downward pressure on platinum.

Although oil prices have retreated from intraday highs, this correction has not provided meaningful support to platinum. Traders remain concerned that high energy prices will hurt the global economy and weaken demand prospects for platinum.

If platinum decisively breaks below the $1,880–$1,900 support zone, the next target may be the $1,785–$1,805 range.

Beyond precious metals, Bitcoin has also faced clear selling pressure. Over the past 24 hours, Bitcoin fell about 3.5%, breaking below the key psychological level of $70,000. Markets are concerned that rising oil prices could reignite inflation, forcing major central banks to delay rate cuts or maintain higher rates for longer.

Powell previously noted that the impact of the Iran conflict on the U.S. economy remains "uncertain." While the Fed’s decision to hold rates was expected, persistent inflationary pressures from oil prices could push planned rate cuts into the second half of the year—or even delay them until tensions in the Middle East ease.

In terms of fund flows, net inflows into Bitcoin spot ETFs turned negative in the previous trading session, the first decline after eight consecutive days of inflows, further dampening market sentiment.

At the same time, Bitcoin trading volume surged nearly 20%, accounting for about 3.5% of its circulating market cap, indicating accelerated position unwinding. The Crypto Fear & Greed Index dropped from 46 (neutral) to 29 (fear). As Bitcoin broke below key support levels, long liquidation volumes increased noticeably.

There are concerns that if Bitcoin continues to decline in the coming hours, what was seen as the start of a strong rebound may instead prove to be a false breakout.

On the 4-hour chart, markets had previously anticipated that a break above $73,000 could pave the way toward $85,000. However, it was also expected that the former resistance level around $71,000 would turn into support upon retesting.

Bears have now successfully broken below this key zone, making the prior breakout appear more like a "false breakout."

Momentum indicators show that the 4-hour RSI is rapidly approaching oversold territory, suggesting accelerating negative momentum. If Bitcoin fails to reclaim the $70,000 level today, the likelihood of a retest of the $60,000 mark in the coming days will increase significantly.

On the hourly chart, two consecutive "sell" signals have emerged: the first appeared just before the Fed press conference, and the second shortly after U.S. markets opened on Thursday.

However, some buying support has emerged around $69,200. If prices rebound from this level, it may indicate that the selling pressure is nearing a short-term low. Conversely, a further breakdown would confirm the prior sell signals and open the door for short-term trend-following trades.

A continued decline toward $62,000 would present an attractive risk-reward trading opportunity.

It is important to note, however, that on lower timeframes, the RSI has entered oversold territory, suggesting that Bitcoin may experience a technical rebound before resuming its downward trend.

Conversely, if prices break back above $71,500, the bullish scenario would remain intact, implying that the current decline could turn into a "bear trap" and set the stage for a stronger short squeeze.