Headline: Gold Falls Toward $4,000 as Deleveraging and Softer Fed Cut Bets Pressure XAU/USD
Gold extended its pullback on Tuesday, slipping another 0.8% to about $4,011 and setting up a fourth straight daily decline. The move reflects a broader wave of market deleveraging alongside a recalibration of Federal Reserve rate-cut expectations, with futures now implying roughly a 42% chance of a December cut.
While gold remains a favored hedge against slowing global growth, political uncertainty, and geopolitical risk, near-term momentum has weakened. Technically, the metal has shown signs of fatigue after a failed double-top around $4,368 and a subsequent rejection just above $4,200, carving out a minor flag pattern on the charts. The $4,000 handle is a critical line in the sand—both as a psychological level and as a near-term support area that traders are watching closely.
The broader risk backdrop still looks more like a controlled de-risking than a full-blown panic, but cross-asset volatility—from cryptocurrencies to large-cap technology and AI names—underscores rising caution. If risk appetite deteriorates into more acute “fear,” safe-haven demand could rotate back into gold. Until then, the path of least resistance may remain choppy, with dip-buying likely to be more selective and timing-dependent.
Key Points: – Gold (XAU/USD) drops 0.8% to roughly $4,011, eyeing a fourth consecutive daily loss – Fed funds futures price about a 42% chance of a December rate cut, tempering policy support for bullion – Technical picture: failed double-top near $4,368, rejection above $4,200, and a minor flag pattern forming – $4,000 is a key psychological and technical support level to monitor – Deleveraging across markets is pressuring gold in the short term, though deeper risk aversion could revive haven flows
