Gold prices break $4,000 as investors brace for crucial test - Yahoo Finance Singapore

AI desk brief

Spot gold slipped below the key $4,000/oz level on Friday, finishing near $3,995.80 after touching $3,975.64, leaving bullion about 29% below its January $5,595 peak and down roughly 4% for the week. Bank of America strategist Paul Ciana sees $3,943 as the next important support, with downside targets at $3,886 and $3,700 if that level breaks; he advises nibbling below $4,000 and adding near $3,700.

Near-term macro drivers are turning less supportive: oil’s jump on Middle East disruption fears has revived inflation concerns ahead of the Fed’s Oct. 27-28 meeting and Oct. 29 PCE report, while higher yields and a firmer dollar would further pressure gold. Offsetting that, ETF demand remains strong, with the World Gold Council citing nearly $10 billion of September inflows and a record $31 billion in Q3, lifting holdings by 67t to 4,256t despite the price drop.