Gold is getting crushed by the US Federal Reserve

Goldfinger

Screenshot/YouTube

Gold's stunning rally, which saw it gain more than 15% in the first quarter of 2016, is going into reverse.

Gold has seen a huge rally in 2016, enjoying its best quarter in nearly three decades at the start of the year, gaining about 18% to the end of March and coming close to the top of the charts when it comes to global asset strength.

But the US Federal Reserve has called a halt to party.

The minutes of the Federal Reserve's April meeting released Wednesday showed that the Federal Open Market Committee could raise its benchmark interest rate next month if the economic data warrants it.

Most members of the policy-setting committee said they would be willing to vote for a hike if the labour market kept improving and inflation continued to approach the Fed's 2% target.

Tightening monetary policy is generally seen as bad news for the gold price, and investors have taken note. The gains seen at the start of May have all been wiped out, and the price is now back to levels seen in April.

Here is the chart showing the gold price over the past month:

Gold1

Screenshot/YouTube

And here is the chart showing the drop in the gold price over the past day:

goldprice1

Screenshot/YouTube

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