Gold slips below $4,000, heads for second weekly loss

💡 DMK Insight

Gold’s recent dip below $4,000 signals a critical moment for traders: After a brief hold above this psychological level, the market’s reaction to the Fed’s interest rate cut is crucial. Investors are reassessing their positions, and this could lead to increased volatility. If gold fails to reclaim $4,000 soon, we might see a deeper pullback, potentially targeting support levels that could trigger stop-loss orders. It’s worth noting that the Fed’s monetary policy shifts often have ripple effects across other assets, particularly in the forex market. A stronger dollar could further pressure gold prices, while any dovish signals from the Fed could provide a lifeline. Keep an eye on the $3,950 support level; a break below that could signal a bearish trend. Conversely, if gold can regain $4,000, it may attract bullish momentum, especially from institutional investors looking for safe-haven assets amid economic uncertainty.