Gold Faces Pressure Ahead of Fed Decision as Prices Extend Drop Below $4,000 - TradingKey

AI desk brief

Gold extended losses in Asia on Oct. 23, breaking below the $4,000 psychological level to an intraday low of $3,986.54 after a 2.83% drop to $4,024.21 on Thursday. The move is being driven by a mix of elevated energy prices, sticky inflation expectations, and rising odds of another Fed hike in December, with the article also flagging a broader liquidity/de-leveraging sell-off across precious metals, copper and tech stocks.

$4,000 is the key near-term pivot: a failed reclaim opens downside toward $3,960, while a close back above $4,000 could trigger a rebound toward $4,066 resistance. Upcoming Fed policy and U.S. PCE inflation data are the main catalysts.