Gold had a difficult week, falling below US$4,000 as shifting Fed expectations and forced selling put renewed pressure on prices. In the report below, we look at what triggered the sharp decline, why longer-term investors appear to be holding steady despite the volatility, and how interest rates, inflation, and geopolitical developments could shape gold’s next move.

“If you catch 100 red fire ants as well as 100 large black ants, and put them in a jar, at first, nothing will happen. However, if you violently shake the jar and dump them back on the ground the ants will fight until they eventually kill each other. The thing is, the red ants think the black ants are the enemy and vice versa, when in reality, the real enemy is the person who shook the jar.