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Gold Reclaims $4,000 in Volatile Trade Ahead of Fed Decision

Fed guidance now stands as the key catalyst for a gold market shaken by trade‑deal optimism.

Overview

  • Gold is down roughly 8–10% from the Oct. 20 record near $4,381 after progress on a USChina trade framework reduced safe‑haven demand.
  • Prices briefly fell below $4,000 before rebounding above that level on Wednesday, with choppy moves as investors prepare for a widely expected 25 bps Fed cut.
  • ETF flows turned negative, including about $1 billion pulled from SPDR Gold Shares on Monday, adding to selling pressure.
  • Near‑term outlooks were trimmed, with Citi cutting its three‑month target to around $3,800 and Bank of America highlighting $3,800 as a 4Q downside level.
  • Indian bullion markets tracked the swings, with steep declines early in the week followed by a Rs 2,600 rebound to Rs 1,24,400 per 10 g in Delhi as bargain buying emerged.