Gold Falls Below $4,000 as Market Focuses on Fed and September PCE After Consecutive Adjustments - TradingKey

AI desk brief

Spot gold fell below the key $4,000 psychological level in Asian trade, hitting an intraday low of $3,977.95 after its largest weekly drop since June. The selloff is being driven by persistent U.S. inflation, firmer oil, and reduced expectations for a dovish Fed pivot, with the market pricing roughly a 78% chance of another December rate hike.

Technical liquidation and margin-related selling added to the downside after gold broke successive support levels around $4,100 and $4,000. Near term, traders are watching last week’s low around $3,975, then $3,960 on further weakness; to stabilize, gold needs to regain $4,000-$4,025. The Oct. 27-28 Fed meeting and Oct. 29 PCE inflation data are the key catalysts.