Gold prices plunged to a seven-month low early Thursday, dropping below the critical $4,000 psychological threshold to trade around $3,995 during Asian hours. This marks the first time the precious metal has breached this level since November 2025, driven by mounting expectations of Federal Reserve interest rate hikes and renewed US Dollar strength. The selloff extends recent weakness as traders increasingly price in a more hawkish Fed policy stance, making non-yielding assets like gold less attractive.
Market participants are now bracing for the upcoming US Personal Consumption Expenditures data, which could further influence Fed policy expectations and gold’s trajectory. The stronger Dollar is amplifying pressure on gold, making it more expensive for international buyers. Traders and brokers should monitor how sustained weakness below $4,000 could trigger additional technical selling and stop-loss orders.
FXnCO Insight
Gold bears remain firmly in control below $4,000, but today’s PCE data could either accelerate the decline or provide a short-term relief bounce depending on inflation signals.
Source: FXStreet