Overview
- Spot prices plunged below $4,000 on Monday in the largest rout in years, then edged back above that level on Tuesday helped by a softer dollar and ongoing rate‑cut bets.
- The reversal follows a blistering October rally to records above $4,380, leaving gold still up more than 50% for the year on central‑bank buying and the debasement trade.
- Optimism on a US–China agreement reduced safe‑haven demand, with analysts citing overbought technicals, retail FOMO flows and ETF withdrawals as accelerants to the pullback.
- Citigroup lowered its three‑month target to $3,800, while industry voices at the LBMA conference flagged about $3,500 as a ‘healthy’ level and some economists warned of a mini‑bust dynamic.
- Domestic markets mirrored the swing, with Indian MCX contracts sliding and Pakistan’s per‑tola price down Rs3,300, as traders awaited a widely expected 25 bps Fed cut and guidance on the outlook.