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Gold Holds Near $3,950 After Brief Drop Below $4,000 as Fed Decision Looms

Attention shifts to the Fed’s rate call following USChina trade progress that cooled safe‑haven demand.

Overview

  • Spot bullion stabilized around $3,950–$3,970 on Oct 29 after a three‑day slide that briefly drove prices below $4,000 and marked the steepest rout in years.
  • Signals of a USChina trade framework and a planned TrumpXi meeting reduced haven flows, reversing part of October’s record rally.
  • Markets widely expect a 25‑basis‑point Fed cut today, with traders focused on Chair Jerome Powell’s guidance for clues on further easing.
  • Citigroup lowered its three‑month gold target to $3,800 and flagged near‑term downside on profit‑taking, with gold ETFs seeing outflows including about $1 billion from SPDR Gold Shares on Monday.
  • Local prices tracked the global pullback, with sharp declines reported across Indian cities and in Pakistan, although gold remains up roughly 50% year to date.