Gold prices have plunged 10% following the Federal Reserve's decision to trim its 2026 rate cut outlook. After maintaining levels above $5,000, gold fell sharply, breaking the psychological $5,000 barrier and dropping to $4,500. The Fed's updated dot plot, which reduced the expected rate cuts from two to one in 2026, triggered the sell-off. Additionally, February's Producer Price Index exceeded expectations at 0.7%, further unsettling markets. The bond market reacted swiftly, with the 10-year Treasury yield rising to 4.2% and the Dollar Index nearing 99.9, creating a challenging environment for non-yielding assets like gold. The metal's break below its 50-day moving average of $4,978 intensified the bearish momentum, leading to significant liquidation of long positions. As gold trades near $4,500, the market remains bearish, with the next support level at $4,350. The geopolitical climate, including rising oil prices, continues to pressure gold as a safe haven asset.