Gold prices Decline, Breaching โข$4,000 as Dollar Gains โandโ Fundsโ Reduce Positions
World gold prices experienced a sharp decline today, November 4th, 2025, falling below the $4,000 โper ounce mark. Spot gold decreased 0.8% toโ $3,970.39 per ounce at 1:25โ p.m. โThai time. December gold futuresโค on โthe US Comex market also fell, droppingโ nearly 1% to $3,979.30 anโค ounce, a $34.7 decrease from Monday night’s closing price of $4,014.00 an ounce.
Several factors are contributingโฃ to the downward pressure on gold. The US dollar remains stable at its highest level in over three months, and expectations for further interest rate cuts by the Federal Reserve (Fed) in December have diminished.Easing trade tensions between the United States โand China are โคalso impacting demand for the โขpreciousโฃ metal.
“A stronger dollar is a thorn inโ gold’s โขside. Investors are evaluating the possibility of another rate cutโ by the end of the year,” noted โฃTim Waterer, chief market analyst at โKCM.
Last week, the Fed implemented its โsecond interest rate cut of the year. โHowever, fed Chairman Jerome โขPowell signaled that another cut this year isโข “notโฃ certain.” Consequently, the probability ofโ a December rate cut โคhas fallen to 65%, down โขfrom over 90% prior to Powell’s recent statements.
Adding to the selling pressure,โ Bank of America (bofa) analysts, led by Chintanโค Kotecha, report that trend-following funds and Commodity โคTradingโ Advisors (CTAs) are gradually closing their long gold positions โฃfollowing a two-week decline in price.
According to BofA, “Many of our low-risk models have closed all gold positions, while some CTA funds with a higher risk appetite may still hold long positions. Becauseโ the gold price โฃtrend still sends a positive signal. Although the speed may โbe โขdifferent according to each model.”
While BofA’s models currently indicate gold will remainโค in a long position across all timeframes through the end of October, with trend strength at 100%, some โmodels โhave reached their โข”stop-out” levels. โขHistorically, โฃthis โpattern has been linked โto increased market volatility due to increased selling.