Gold prices remain under heavy pressure Wednesday morning in European trading, holding below the critical $4,000 psychological level for the third consecutive session. The precious metal is dangerously close to retesting its year-to-date low reached Tuesday, which also marked the weakest point since November 2025. Market participants are adopting a cautious stance ahead of a scheduled speech from Federal Reserve Chair Warsh, with traders scaling back positions in the yellow metal amid uncertainty about future monetary policy direction. The sustained weakness in gold reflects broader risk sentiment shifts and concerns about the Fed’s policy trajectory under new leadership. The metal’s inability to reclaim the $4,000 threshold signals deteriorating technical conditions that could accelerate selling pressure if support levels fail. Brokers report thin liquidity conditions amplifying price movements as the market awaits clarity from Warsh’s remarks.
FXnCO Insight
Traders should monitor the November 2025 low as a critical support level, with a break below likely triggering stop-loss cascades and opening downside toward $3,900.
Source: FXStreet