Gold extended its slide for a fourth consecutive session on Tuesday, pulled lower by a firmer US dollar and fading expectations of a December Fed rate cut. Spot gold slipped 0.8% to $4,011.85/oz, while December futures fell 1.6%. The metal is now down over 7% this month, retreating from October’s record highs above $4,400.
A look at the weekly chart shows gold easing steadily from $4,200/oz earlier in the week to the $4,020 range.
Dollar Strength + Rate Doubts = Pressure
The dollar index strengthened again, making gold more expensive for foreign buyers. Combined with reduced speculative positioning, near-term momentum has cooled.
Fed Vice Chair Philip Jefferson added pressure on Monday, saying policymakers must “proceed slowly” with further rate cuts. Market odds for a December cut — once near 100% after September’s meeting — have dropped sharply to 42%.
Investors now wait for Thursday’s long-delayed US nonfarm payrolls report, which could reset rate expectations yet again.
Other precious metals were also weaker:
• Silver: –1.1% to $49.63
• Platinum: –1.3% to $1,514.35
• Palladium: –1.2% to $1,369.78
Goldman Sachs: Pullback Doesn’t Change the Big Picture
Despite the recent slide, Goldman Sachs remains firmly bullish. The bank reiterated its $4,900 end-2026 price target, arguing that the main driver — central bank buying — is only strengthening.
Goldman’s latest estimates show:
• 64 tonnes purchased in September (up from 21 tonnes in August)
• Strong buying likely continued through November
• China, Qatar, and Oman among the latest notable buyers
• ETF inflows surged 112 tonnes, the largest since mid-2022
Goldman expects central banks to keep buying ~80 tonnes per month into 2026, driven by reserve diversification, geopolitical risk hedging, and de-dollarisation trends.
Why Gold Surged in 2025, and Why the Trend Isn’t Broken
Gold’s spectacular performance this year — up 55% year-to-date — has been supported by:
• Falling Treasury yields (10-yr down from 4.77% in January to 4.14%)
• A weaker US dollar (DXY down from 109 to ~99)
• Rising geopolitical tensions
• Concerns over US debt sustainability
• Persistent central bank demand
The recent decline reflects short-term forces: stronger dollar, higher yields, and uncertainty around the next Fed move.
But the long-term drivers remain intact, and analysts say dips of this size are typical within an extended uptrend.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Related:
The United States, Switzerland, and Liechtenstein Reach a Historic Trade Deal
Warren Buffett Reveals New $4.3B Alphabet Stake, And Sells More Apple Ahead of Buffett’s Exit
