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Gold Holds Near $4,000 as Fed Tone, Stronger Dollar and Trade Truce Cool Rally

Cautious Fed guidance is steering bullion into a consolidation phase.

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Gold prices near $4,000 stall as traders await clear signals from the Fed and US-China trade truce talks
The gold price has more than doubled over the past two years as the precious metal continues its bull run. (Image: iStock)
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Overview

  • Spot bullion hovered around $4,000 and logged a second straight weekly decline, leaving prices roughly 8%–9% below the Oct. 20 record above $4,380.
  • The Federal Reserve cut rates by 25 basis points to 3.75%–4.00%, but Chair Jerome Powell said a December cut is not assured, lifting the dollar toward three‑month highs and weighing on gold.
  • Traders assessed a one‑year US–China trade truce that included limited tariff relief, commitments on rare earths and soybean purchases, and fentanyl enforcement, which reduced immediate safe‑haven demand.
  • Gold‑backed ETF holdings fell for six sessions before a small inflow, with analysts citing recent outflows, a firmer dollar and the policy outlook as drivers of the correction.
  • World Gold Council data showed record Q3 demand at 1,313 tonnes, including about 220 tonnes of central‑bank buying and record ETF inflows, while India flipped to dealer discounts post‑festivals and Pakistan saw local prices surge.