09:37 AM EDT, 03/19/2026 (MT Newswires) -- Gold prices plunged early Thursday, dropping 7.3% to the lowest in more than three months on profit-taking and the fading hopes for lower U.S. interest rates.

Gold for April delivery was last seen down $356.10 to US$4,540.10 per ounce, the lowest since Jan.2. Silver prices were also sharply lower, falling $11.44, or 11.3%, to US$66.16.

The drop comes after the Federal Reserve on Wednesday left U.S. interest rates unchanged, as expected, at the end of the two-day meeting of its policy committee. However in a press conference following the rate decision, Fed Chair Jerome Powell said inflation is not coming down as quickly as the central bank hoped, with CNBC reporting futures markets are no longer expecting any cut to interest rates this year.

"Gold fell sharply for a second day after breaking key support below USD 5,000, with profit-taking accelerating amid a stronger dollar and a more hawkish tone from Fed Chair Jerome Powell following the latest FOMC meeting," Saxo Bank wrote.

The dollar was lower early, with the ICE dollar index last seen down 0.12 points to 99.96. Treasury yields were sharply higher, with the yield on the U.S. two-year note last seen up 9.8 basis points to 3.877%, while the 10-year note was paying 4.294%, up 2.9 basis points.