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Gold Rebounds Toward $4,000 After Sharp Selloff as Fed Decision Nears

Traders weigh a USChina trade thaw that has drained safe-haven demand against the prospect of a rate cut.

Overview

  • Spot gold hovered around $3,950–$3,975 early Wednesday after a three-day slide that took prices below $3,900 and more than 8% off the Oct. 20 record of $4,381.21.
  • Markets widely expect a 25-basis-point Federal Reserve cut today, with investors focused on Chair Jerome Powell’s guidance to determine whether bullion can stabilize.
  • Progress toward a TrumpXi trade framework has reduced safe-haven flows, while profit-taking, technical selling and withdrawals from gold-backed ETFs accelerated the downturn.
  • Citi cut its three-month gold target to $3,800 and highlighted potential support near the 100-day average around $3,600 as near-term risks persist.
  • Domestic markets echoed global moves, with Indian prices slipping below Rs 1,20,000 per 10 grams and Pakistan’s per-tola rate rebounding Rs 3,500 after steep declines.