Gold prices Decline, Breaching $4,000 as Dollar Gains and Funds Reduce Positions
World gold prices experienced a sharp decline today, November 4th, 2025, falling below the $4,000 per ounce mark. Spot gold decreased 0.8% to $3,970.39 per ounce at 1:25 p.m. Thai time. December gold futures on the US Comex market also fell, dropping nearly 1% to $3,979.30 an ounce, a $34.7 decrease from Monday night’s closing price of $4,014.00 an ounce.
Several factors are contributing 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 and China are also impacting demand for the precious metal.
“A stronger dollar is a thorn in gold’s side. Investors are evaluating the possibility of another rate cut by the end of the year,” noted Tim Waterer, chief market analyst at KCM.
Last week, the Fed implemented its second interest rate cut of the year. However, fed Chairman Jerome Powell signaled that another cut this year is “not certain.” Consequently, the probability of a December rate cut has fallen to 65%, down from over 90% prior to Powell’s recent statements.
Adding to the selling pressure, Bank of America (bofa) analysts, led by Chintan Kotecha, report that trend-following funds and Commodity Trading Advisors (CTAs) are gradually closing their long gold positions following 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. Because the gold price trend still sends a positive signal. Although the speed may be different according to each model.”
While BofA’s models currently indicate gold will remain in a long position across all timeframes through the end of October, with trend strength at 100%, some models have reached their ”stop-out” levels. Historically, this pattern has been linked to increased market volatility due to increased selling.
