The reason for the significant drop in gold prices has been identified.

On Friday, spot gold fell below the $4500 mark during trading, marking the eighth consecutive day of decline. The gold futures for April delivery on the New York Mercantile Exchange have been falling since last Friday, when they were at $5061.70 per ounce, to below $4600 per ounce this Friday, resulting in a total decline of 9.62% for the week, marking the largest weekly drop in 15 years. Gold, usually considered a safe-haven asset, has been performing unusually poorly, and experts point to the shift in market sentiment from "geopolitical risk aversion" to "inflation expectations and monetary policy." The recent conflicts in the Middle East have ignited concerns about global inflation resurgence, prompting central banks around the world to reconsider their monetary policy paths in the face of potential stagflation risks. The Chicago Mercantile Exchange's FedWatch tool indicates that the market now sees less than a 10% chance of the Federal Reserve cutting interest rates this year, and even a possibility of raising them, which has increased the attractiveness of interest-bearing assets like bonds over non-interest-bearing assets like gold. Additionally, the recent strength of the US dollar has suppressed demand for gold, putting downward pressure on gold prices. Since the outbreak of the conflict, international gold futures have fallen by approximately 13%.