Gold Climbs Back Above $4,000 After Sharp Selloff Tests Safe‑Haven Faith

Gold prices have staged a modest recovery after a steep selloff earlier in October pushed spot XAU/USD briefly below the psychologically important $4,000 per‑ounce mark. Futures data show that the December COMEX contract fell more than 4% in the week to October 23, one of the sharpest weekly drops this year, before stabilizing in the $4,000–$4,050 range. Intraday quotes on October 26 put spot gold just under 1% higher from recent lows, with a relatively tight trading band between roughly $3,980 and $4,030.

The correction came as a broader risk‑off move swept through global markets: oil prices climbed, AI‑linked tech stocks slid and investors raised cash, hitting even traditional safe‑haven assets. Yet real yields and the U.S. dollar have eased slightly from their recent peaks, and there is little evidence of large‑scale liquidation by central banks or long‑horizon institutional holders who use gold as a strategic hedge.

By October 26, several market trackers were quoting gold up around 0.4% on the day, suggesting that selling pressure has at least paused ahead of the Fed meeting and key inflation releases. For short‑term traders, the $4,000 line has become a focal pivot for “sell‑the‑rally” and “buy‑the‑dip” strategies. Longer‑term, however, analysts note that the entire trading range for gold has shifted markedly higher compared with just a few years ago, reflecting persistent concerns over fiscal deficits, inflation and geopolitical instability.