WGC: Gold Faces Critical $3,858 Support Amid Fed Policy Uncertainty

Gold  |  2026-11-03 05:34:53   |   By

Expectations of tighter monetary policy have improved the relative appeal of bonds, resulting in liquidation of gold positions by investors.

Summary

  • Gold Prices Decline Amid Financial Market Volatility

    The LBMA Gold Price PM settled at $3,913 per ounce on Friday, recording a weekly decline of 2.5%. Gold also slipped below the psychologically significant $4,000-per-ounce threshold for the first time since mid-July, bringing its year-to-date losses to 10.4%.

  • Fed Rate Expectations Weigh on Gold Market Sentiment

    The World Gold Council attributed the latest price weakness to changing expectations surrounding U.S. monetary policy following the Federal Reserve's October meeting. Expectations of tighter monetary policy have enhanced the relative attractiveness of bonds, prompting investors to liquidate gold positions.

  • WGC Identifies Critical Gold Price Levels and Market Catalysts

    The WGC identified $3,858 per ounce as a crucial support level, with further downside support at $3,820, $3,605 and $3,500. Initial resistance stands at $4,083, while a recovery above the 55-day moving average of approximately $4,275 could signal a more sustainable rebound. U.S. midterm election results and October non-farm payrolls are the immediate market catalysts.

SEATTLE (Scrap Monster): Gold prices remained under pressure last week, mainly due to shifting expectations for U.S. monetary policy, investor positioning and broader financial market volatility, said the World Gold Council (WGC) in its latest Weekly Markets Monitor.

The LBMA Gold Price PM settled Friday at $3,913 per ounce, marking a weekly decline of 2.5%. Gold also slipped below the psychologically important level of $4,000 per ounce for the first time since mid-July. The yellow metal has lost 10.4% year-to-date, WGC report noted.

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According to the WGC, the latest weakness largely reflects a reassessment of the Federal Reserve's interest rate outlook following its October meeting. Expectations of tighter monetary policy have improved the relative appeal of bonds, resulting in liquidation of gold positions by investors.

Looking ahead, the WGC considers $3,858 per ounce a critical support level. A sustained break below this threshold could expose subsequent support at $3,820, followed by $3,605 and $3,500. On the upside, $4,083 represents initial resistance. A recovery above the 55-day moving average, currently around $4,275, would provide stronger evidence that a sustainable price recovery is developing.

The report identified U.S. midterm election results and October non-farm payrolls as the immediate market catalysts.