Gold slips under $4,000 per ounce, ending 3-year rally
Gold just dropped under $4,000 per ounce for the first time since November, ending a wild three-year run where its price more than doubled.
After peaking near $5,600 in late January thanks to big demand from central banks and investors, gold has now fallen 2.9% to $3,999.90 on Wednesday, marking two straight days of losses.
Rate worries, ETF selling hit gold
A mix of things is weighing gold down: inflation worries fueled by the U.S.-Iran conflict and rising energy costs are pushing up expectations for interest rate hikes.
The Fed's Kevin Warsh sounded pretty tough last week, which didn't help either.
Plus, demand has cooled off: ETFs keep selling gold and China isn't importing much right now.
Major banks cut gold forecasts
Major banks like Goldman Sachs and Deutsche Bank have lowered their forecasts for gold prices as the market shifts.
Still, central banks are buying up gold at their fastest pace in over a year, which helps soften the blow a bit.