The Federal Reserve signaled a more hawkish stance than markets had priced, pushing the DXY dollar index higher and triggering a meaningful selloff in gold. The move reflects a recalibration of rate-cut expectations, with the market now pricing fewer cuts and a higher-for-longer rate environment. Gold, which had run up significantly on expectations of easing, is now facing a direct headwind from rising real yields and a stronger dollar.

The key question is whether this hawkish repricing is a durable shift or a one-session reaction. Watch the next inflation print and Fed speakers for confirmation — if the data stays sticky, the dollar could extend gains while gold tests key support levels. On the other side, any softer CPI reading or dovish Fed pivot could quickly reverse this move.