Gold stumbles further towards $4,000 mark on the week | investingLive

The precious metal now looks poised to make it four straight days of losses, down 0.8% today to $4,011 currently. It comes as we see some further signs of deleveraging in markets, with some pointing to easing Fed rate cut bets. While that may be true as Fed funds futures now only price in ~42% odds of a December move, it’s only part of the story.

As much as it is a coincidence, gold has turned out to be one of more greedy investments in 2025. I’ll be the first to admit that I myself have more than one occasion advocated for buying gold on dips when trying to funnel excess liquidity. The argument for doing so is just that good.

In a time when markets are dealing with so much caution, gold doubles up as that as a brilliant hedge against slowing global growth, political uncertainty, and geopolitical tensions.

But one can argue that from a technical perspective, there has also been signs of exhaustion in gold. The double-top pattern failure around $4,368 was the first sign before the setback suffered last week just above $4,200. And that’s creating a minor flag pattern in gold, one of the first ones in a long, long while.

The $4,000 mark will be a key one to watch not just in that regard, but also from a psychological standpoint. As the risk rout deepens, eventually I would argue that will translate to bids in gold if the fear level moves up a couple of notches.

For now, it just feels like a classic case of broader markets seeking some deleveraging and correction. The overall risk backdrop hasn’t quite come under heavy scrutiny and backlash just yet.

But in a time when there are hints and suggestions that perhaps the landscape is shifting, it is worth to heed some caution rather than diving in with both feet for the time being.

I mean, just look at what is happening with Bitcoin and the whole MSTR ordeal currently, then also doubts starting to grow on Nvidia’s future as well as big names selling off their entire stakes in the firm in the last quarter. There are certainly some nervousness permeating across markets. So, just keep that in mind.

I’ve been happy to be buying dips in gold before but not quite in this latest stretch in the past week. If the shoe drops, we’ll have to wait for the tide to turn from “deleveraging/panic selling” to “extreme fear” before gold will start to come back I reckon.