Gold falls below $4,000 for first time since November 2025

Spot gold dropped below $4,000 per ounce on Wednesday for the first time in seven months as the U.S. Dollar Index hit a 13-month high.reuters
The selloff accelerated after last week’s hawkish Fed meeting under Chair Kevin Warsh raised expectations for rate hikes, prompting banks to slash gold forecasts.cnbc
Silver fell below $60 to its lowest since December 2025, while Goldman Sachs ↘1.81% and Deutsche Bank ↘3.35% cut price targets sharply.reuters

Gold Breaks Below $4,000 as Dollar Surge and Rate-Hike Fears Pummel Precious Metals

Gold fell below the psychologically important $4,000-per-ounce level on Wednesday for the first time since November 2025, as a surging U.S. dollar and growing expectations of Federal Reserve rate hikes drove a broad selloff in precious metals.

The Rout Deepens

Spot gold dropped more than 3% to trade around $3,968 per ounce during the session, according to Reuters, while U.S. gold futures fell 2.6% to $4,039.30. The decline came a day after gold futures had already shed 1.3%, closing at $4,149.40 on Tuesday amid a wider technology stock selloff.cnbc

Silver suffered an even steeper decline, falling below $60 per ounce to its weakest level since December 2025. Platinum and palladium also dropped more than 4% each.reuters

The precious metals rout has been relentless. Gold hit an all-time high near $5,595 in late January before entering what analysts now call a bear market, having retreated roughly 29% from that peak.reuters

Dollar Strength and a Hawkish Fed

The U.S. Dollar Index climbed to a 13-month high on Wednesday as investors sought safety from the tech selloff and repositioned for potential rate increases. The stronger dollar makes gold more expensive for international buyers, compounding the pressure on prices.reuters

The catalyst for the shift in sentiment was last week’s Federal Reserve meeting under Chair Kevin Warsh, which heightened expectations for a rate increase by year-end. Higher interest rates raise the opportunity cost of holding non-yielding assets like gold.cnbc

Wall Street Slashes Forecasts

Investment banks have rushed to lower their price targets. ING now expects gold to average $4,300 per ounce in the third quarter and $4,600 in the fourth, down from previous forecasts of $4,850 and $5,000. BMO Capital Markets cut its second-half gold forecast by 5% to around $4,625 per ounce and lowered its near-term silver outlook to $69 for the third quarter.mitrade

Deutsche Bank warned that three to four Fed rate hikes could push gold as low as $3,800, while Goldman Sachs slashed its year-end target by $500 to $4,900.moomoo

Still, not all analysts see a collapse ahead. “There is support just under $3,900 and central bank purchases continue, so a collapse is unlikely,” one strategist told Reuters, “but expect a potentially long period of consolidation as the gold trade is now out of favor”.reuters