Gold Daily | Profit-Taking Pulls Gold Below $4000 Amid Weekly Rise and Fed Rate Cut Expectations

【Latest Gold Price and Recent Trends】

International gold prices slightly retreated on Friday, October 10, after surpassing the $4000 mark earlier this week, prompting profit-taking among investors. Despite a 0.1% drop to $3970.11, gold has seen a cumulative weekly rise of 2.3%, supported by global market uncertainties and expectations of Federal Reserve rate cuts.

【Technical Analysis】

Recent charts show that gold prices experienced a pullback due to profit-taking. Although the uptrend remains steep, short-term technical challenges persist for dip buyers. Intraday lows touched $3947. On the 1-hour chart, there's resistance near $4000, which could be a pivotal point for the bears. If the price breaks above this resistance, buyers may add positions to push prices higher. Key support levels lie at $3962, with potential further downside to the $3819 region if breached.

【Market Sentiment and Economic Background】

Gold reached a historic high of $4059.05 this week, driven by factors such as geopolitical risks, central banks' purchases, ETF inflows, and anticipated Federal Reserve rate cuts. The U.S. government shutdown has provided momentum to the gold rally, as it lacks resistance in the current economic climate. The delay in U.S. CPI data release poses potential risks, as higher-than-expected inflation data could lead to hawkish market repricing and a gold pullback.

【Analyst Opinions】

Allegiance Gold COO Alex Ebkarian noted that the $4000 psychological level triggered profit-taking among speculators and short-term traders, yet long-term investors see it as a confirmation of declining confidence in fiat currencies. Analyst Peter Schiff warned that the recent gold rise may signify a looming debt crisis in the U.S. by 2026, potentially heralding an economic disaster similar to the 2008 financial crisis. Analysts suggest that prolonged U.S. government shutdowns may continue to drive gold's upward momentum, enhancing its chance to reach new highs.