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Gold prices plunge to one-year low below $3,900 as higher oil prices fuel fears of more pain ahead
Kitco • • business
Key Points:
- Gold prices fell sharply below $4,000 an ounce on Friday, reaching their lowest level since October 2025, driven by broad selling pressure despite a weakening U.S. dollar and bond yields.
- The precious metal's decline is attributed to market concerns about ongoing inflation, expected Federal Reserve interest rate hikes, and geopolitical tensions, particularly the war with Iran keeping oil prices elevated.
- Analysts highlight that gold's outlook depends on future economic data, including U.S. labor market cooling, inflation trends, and interest rate expectations, with technical indicators suggesting continued downward momentum.
- The upcoming U.S. midterm elections and key economic reports, such as nonfarm payrolls, are expected to influence gold's trajectory amid ongoing market volatility and uncertainty.
- Some experts view the current gold selloff as a potential long-term buying opportunity, noting bearish sentiment and technical factors may signal a market bottom.
