Gold breaks below $3,900 as Wall Street retreats

The yellow metal’s slide marks a stark reversal from the week’s early optimism. After hovering near $4,082 on Wednesday following the Fed’s interest rate decision, gold succumbed to selling pressure fueled by strong third-quarter GDP growth and elevated core PCE inflation. By Friday, the metal had broken decisively below the $4,000 mark, moving in tandem with broader financial market liquidations rather than acting as a traditional safe haven.

Sentiment among professionals has shifted rapidly. According to the Kitco News Weekly Gold Survey, 63% of analysts expect further declines, while Wall Street bulls have largely abandoned their positions. Independent analyst Jesse Colombo warned that the breach of the $3,900–$4,000 support zone—a floor established last year—could accelerate downside momentum toward $3,500. Analysts at FxPro and SIA Wealth Management echoed these concerns, noting that gold’s correlation with equity sell-offs and rising oil prices suggests a deeper correction is underway. While retail investors on Main Street maintain a narrow bullish bias, the market remains focused on upcoming economic indicators, specifically nonfarm payrolls, to gauge whether the Fed will maintain its tightening trajectory through December.