Gold prices stabilise below $4,000 following a 1.59% drop, marking its largest one-day decline since mid-August. The retreat comes as geopolitical pressures ease with a US-brokered peace deal between Israel and Hamas, reducing safe haven demand. <\/p>\n
Gold stands firm after a sharp decrease the previous day, maintaining around $3,985 as it struggles to surpass the $4,000 threshold. The dip results from profit-taking and diminished geopolitical worries, as the broader upward trend remains backed by economic uncertainty and a dovish Federal Reserve outlook.<\/p>\n
Persistent global risks, like the Russia-Ukraine conflict and US government shutdown concerns, support gold’s appeal. Central bank buying and Gold-backed ETF inflows also buoy its ongoing rally, which is heading for an eighth straight weekly gain.<\/p>\n
The US Consumer Sentiment Index in October falls slightly from September; inflation outlook remains steady. Despite a weaker US Dollar, Gold struggles to recover following its recent decline. The US Dollar Index nears two-month highs, reflecting its strongest weekly gain this year. <\/p>\n
Gold tries to rebound after testing the $3,950 support zone, facing resistance around the $3,995-$4,000 mark. Sustained gains could lead to new highs, but failure to breach $4,000 might prompt a pullback. The Relative Strength Index indicates a neutral stance, leaving room for varied market movements.<\/p>\n
Gold is giving us mixed signals right now, sitting below the key $4,000 level. The recent peace deal news caused a sharp drop, but the bigger picture of a dovish Fed and high government debt still supports higher prices. This tension creates specific opportunities for derivative traders in the coming weeks.<\/p>\n
For those who believe this is just a temporary dip, buying call options is a clear strategy. With implied volatility now lower after the recent news, entry prices are more attractive for betting on a move back above the all-time high. The CME FedWatch tool is pricing in an over 90% chance of a rate cut in November 2025, which would likely fuel another rally.<\/p>\n
If we expect gold to stay in a range while the market digests recent events, selling volatility makes sense. An iron condor with short strikes outside the $3,900 to $4,100 range could be effective for the coming weeks. This strategy profits from the price staying put and the passage of time.<\/p>\n
However, we can’t ignore the strong US Dollar, which is trading near a DXY level of 99.35, its highest since early August 2025. If the dollar continues its strength or if the government shutdown ends sooner than expected, buying put options below the $3,950 support level offers a way to profit from a deeper correction. This also works as a hedge for anyone holding physical gold or long futures.<\/p>\n
Underlying demand remains a powerful force that suggests buying the dips is the dominant long-term play. Central banks have already added over 800 tonnes to reserves year-to-date in 2025, continuing the aggressive purchasing pattern we observed back in 2022 and 2023. After steady outflows for much of 2024, we’ve also seen gold-backed ETF inflows turn positive this quarter, adding another layer of support.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold steadies below $4,000 as geopolitical easing and profit-taking slow its rally despite lingering global risks.<\/p>\n","protected":false},"author":62,"featured_media":16975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-31988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/31988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=31988"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/31988\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16975"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=31988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=31988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=31988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}