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Gold Rebounds Above $4,000 After Sharp Sell-Off as Trade Thaw Eases Haven Bid

Rate-cut expectations plus a weaker dollar helped steady prices after trade-deal optimism triggered profit-taking.

Overview

  • Spot bullion fell below $4,000 on Monday during the steepest pullback in years, then edged back to roughly $4,010–$4,020 early Tuesday.
  • Weekend talks produced a preliminary Washington–Beijing framework and a TrumpXi meeting is planned in South Korea this week, curbing safe-haven demand.
  • Citigroup cut its three‑month gold target to $3,800, while Capital Economics warned of a potential slide to $3,500 by end‑2026, even as some banks and a Reuters poll flagged longer‑term bullish cases.
  • The slump rippled through local markets, with Indian MCX contracts and retail prices sliding and Pakistan’s per‑tola rates dropping in step with global moves.
  • Silver fell alongside gold during the correction, though gold remains up roughly 50% for 2025 after mid‑October record highs above $4,380.