Gold’s rally stalls as prices dip below $4,000

November 04, 2025 (MLN): Gold prices dipped below the $4,000-per-ounce level on Tuesday, pressured by a firm U.S. dollar hovering near three-month highs and waning expectations of another Federal Reserve rate cut in December.

Easing tensions between the United States and China further reduced safe-haven demand for the precious metal.

Spot gold was down 0.53% at $3,980.87 an ounce as of [10:37 am] PST, according to data reported by Mettis Global.

The dollar remained steady following last week’s Fed decision to cut interest rates for the second time this year.

However, comments from Fed Chair Jerome Powell, who said that an additional cut this year was “not a foregone conclusion,” prompted traders to scale back their bets on further monetary easing.

Gold, which typically benefits from lower interest rates and economic uncertainty, has surged 53% so far this year but has retreated more than 8% from its record high reached on October 20.

On the geopolitical front, President Donald Trump said last week that Washington had agreed to reduce tariffs on Chinese goods in exchange for concessions from Beijing, easing trade-related tensions

According to the CME FedWatch Tool, markets now price in about a 65% probability of a December rate cut down sharply from more than 90% before Powell’s remarks.

Fed policymakers continued to express differing opinions about the U.S. economic outlook on Monday, deepening divisions ahead of the December policy meeting.

The debate is expected to persist as key data releases from the Bureau of Labor Statistics remain delayed due to the ongoing federal government shutdown.

Investors are now awaiting key U.S. data releases, including the ADP employment report due Wednesday and ISM manufacturing and services PMIs later this week, for further signals on the Fed’s policy direction.

In other precious metals, spot silver inched 0.1% lower to $48.05 per ounce, platinum slipped 0.3% to $1,561.10, and palladium dropped 1.6% to $1,422.43.

Copyright Mettis Link News