Gold Price Forecast: Can XAU/USD Reclaim $4,000 After Its Sharp Selloff? - Mitrade

AI desk brief

Gold is trying to stabilise above $3,900 after Friday’s sharp 3.6% selloff took spot gold to an intraday low near $3,870, its weakest since October 2025. The piece frames the near-term question as whether XAU/USD can reclaim $4,000 or slips again toward $3,800; the backdrop remains bearish after the breakdown below $4,000 and amid broader market liquidation tied to the AI-driven tech selloff.

Macro headwinds cited include stronger US growth, September PCE inflation at 3.6% y/y, and a Reuters-reported 73% probability that futures were pricing for a December Fed rate increase. Easing oil prices and improved sentiment helped gold recover modestly on Monday, while US midterm politics and Middle East tensions are flagged as potential catalysts through their impact on oil, inflation expectations, rates and the dollar.