Dollar Surges, Gold Drops as Fed Turns Hawkish

The U.S. dollar strengthened and gold prices fell sharply after the Federal Reserve signaled a more aggressive approach to interest rates. The central bank’s “hawkish” stance—meaning it plans to raise rates or keep them high to fight inflation—boosted the dollar’s appeal. Investors moved away from gold, which typically loses value when the dollar rises. The shift reflects growing expectations that the Fed will prioritize tightening monetary policy, even if it slows economic growth.