Gold slipped under $4,000 per ounce on Tuesday, November 4, 2025, hitting $3,997.12/oz, as hopes for more US interest rate cuts began to fade.
Markets had been riding last week’s Fed rate cut, but three Fed officials on Monday cast doubt on further easing, noting that inflation remains a concern even as the US labor market shows signs of softening.
Traders now see only a 65% chance of a December rate cut, down sharply from over 90% last week, as eyes turn to upcoming US private payrolls data for clues on the Fed’s next move.
Global trade developments also played a role. The US and China recently extended their tariff truce, eased export controls, and reduced other trade barriers, calming safe-haven demand for gold.
Meanwhile, China’s move to end a long-standing tax incentive on gold sales could boost local prices but might cool demand in the world’s largest bullion market.
Even with Tuesday’s dip, gold is still up nearly 46% from a year ago, and has climbed 0.87% over the past month, showing its lasting appeal as a hedge in uncertain times.
