Gold falls below $4,000, but analysts see rebound potential

Gold prices fell below $4,000 an ounce, trading at $3,992.30, marking a weekly decline of over 4% and the worst selloff since early June, driven by technical selling and liquidity concerns despite falling Treasury yields. Persistent inflation has pushed the Federal Reserve into a tightening cycle, raising interest rates and the opportunity cost of holding gold. Analysts attribute Thursday's sharp drop to momentum-driven selling after prices broke below $4,065, with some viewing it as an idiosyncratic liquidity event rather than a fundamental shift. Analysts remain divided on the outlook, with some citing oversold conditions and robust long-term demand as potential for recovery, while others expect pressure from a strong dollar and inflation to persist. The Fed's policy meeting next week is the key event to watch.