Gold stays under $4,050 ahead of the European session, pressured by a hawkish Fed outlook and renewed Middle‑East risk, while traders eye US GDP and PCE data.

Gold (XAU/USD) continued to lose ground in early Thursday European trading, slipping below the $4,050 threshold that had supported it for three days. The slide follows a broader pull‑back in the metal after the U.S. dollar regained strength on Wednesday’s post‑FOMC correction from a two‑week high.

Fed policy stance keeps the dollar on the rise

• The Federal Reserve left rates unchanged at its October meeting, with a 10‑2 vote; Governor Lisa Cook and Cleveland Fed President Beth Hammack favored a 0.25 % hike.
• Fed Chair Kevin Warsh warned that inflation and geopolitical risks remain elevated, keeping the central bank on a tightening watch.
• CME FedWatch shows about an 80 % probability of a rate hike at the December meeting, bolstering dollar demand and pulling money away from non‑yielding gold.

Middle‑East tensions add safe‑haven appeal to the greenback

• U.S. officials have warned Gulf states to prepare for a short, intense campaign against Iran after the November 3 midterms.
• Iran’s foreign minister said the armed forces are ready to defend the country, while Qatar‑led mediators seek to restart U.S.–Iran talks.
• Houthi militants claimed a ballistic‑missile strike on Saudi Arabia’s Ras Tanura refinery and earlier attacks on the East‑West pipeline have lifted oil prices, supporting the dollar.

What traders are watching next

• Key technical levels: resistance near the 100‑period EMA at $4,105 and the channel top around $4,125; support at the $4,000 psychological level and the channel bottom near $3,946.
• Upcoming US data: Advance Q3 GDP and the Personal Consumption Expenditures (PCE) price index, which could influence the Fed’s rate‑path expectations.

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This article is compiled from international market news for information only. It is not investment advice.