Gold Surpasses $4,000 Threshold as Central Bank Purchases Surge

The price of gold has reclaimed the psychologically significant $4,000 level, trading at $4,027.76 after a four-day downward trend. A daily gain of 0.08 percent indicates that the recovery is gaining momentum.

A substantial increase in gold acquisitions by global central banks is fueling this rebound. Purchases in the third quarter soared to approximately 220 tons, representing a significant 28 percent jump compared to the previous quarter. Kazakhstan continues to lead as the most prominent institutional buyer, while Brazil has re-entered the market after a four-year hiatus from purchasing.

• Third-quarter acquisitions surged 28% to 220 tons
• Kazakhstan maintains position as top institutional purchaser
• Brazil resumes gold buying after a four-year absence
• Shift in central bank purchasing patterns is now confirmed

Federal Reserve Tempers Rate Cut Expectations

Despite the positive price movement, the outlook for the precious metal faces headwinds. Federal Reserve Chairman Jerome Powell has significantly moderated market expectations for additional interest rate cuts in December. Markets are now pricing in only a 70 percent probability of a further rate reduction—a sharp decline from the near-certainty previously anticipated.

Should investors sell immediately? Or is it worth buying Gold?

In parallel developments, the United States and China have agreed to a temporary truce in their trade disputes. The US announced a one-year critical minerals agreement and reduced Fentanyl tariffs by half to 10 percent. In return, Beijing has committed to scaling back its production of Fentanyl.

Technical Outlook Remains Uncertain

The technical picture for gold remains tense. Following its October record peak of $4,381.58 per ounce, the metal underwent a correction that brought it down to $3,901.30—representing a substantial 11.3 percent decline. While the current recovery above $4,000 demonstrates stabilizing tendencies, the foundation remains fragile.

Market analysts project the price will reach $4,157.19 per ounce by the quarter's end. The twelve-month forecast stands at $4,360.66, reinforcing the long-term bullish sentiment. With a monthly advance of 4.21 percent and an impressive yearly gain of 47.20 percent, gold continues to serve as the preferred hedge against inflation.