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Gold Under Pressure as Rate-Cut Hopes Fade: Time to Buy the Dip?
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Gold prices have been under pressure in recent trading sessions, pressured by receding expectations for another U.S. interest-rate cut next month. Prices briefly slipped below $4,000 an ounce before trimming losses following a three-day slide, per Bloomberg, as mentioned on Yahoo Finance.
Investors are awaiting key data delayed by the U.S. government shutdown, while several Federal Reserve officials warned against easing policy — though Governor Christopher Waller expressed his support for a cut. Meanwhile, a gauge of the U.S. dollar held its recent gain.
Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) has added 1.3% over the past month (as of Nov. 17, 2025). Since gold underperforms in a rising dollar environment, SPDR Gold Shares (GLD - Free Report) has lost about 7.8% over the past month.
Fading December Rate-Cut Bets
Interest-rate swaps now show less than a 50% chance of a December rate reduction, a sharp decline from less than a month ago when markets had almost expected a quarter-point cut. The move has weakened the outlook for gold, which pays no yield and benefits from lower rates and a softer dollar.
Gold Still on Track for Best Year Since 1979
Despite the recent pullback, gold remains up more than 50% this year (as of Nov. 17, 2025), heading toward its strongest annual gain since 1979, per Bloomberg, as quoted on Yahoo Finance. Investors have turned to bullion as a hedge against tariff-related uncertainty, while heavy central-bank buying has helped propel the metal to a record above $4,380 last month.
Central Banks Extend Buying Spree
Goldman Sachs analysts estimate that central banks purchased 64 tons of gold in September, more than triple the August levels, per the above-mentioned Bloomberg article. India imported gold worth $14.7 billion in October, up nearly 200% year over year, as quoted on CNBC. Indian consumers are estimated to have purchased gold worth $11 billion during the five-day festival period in October.
Time to Buy the Dip?
The PBoC reported its 12th successive monthly gold addition to its reserves in October, adding 0.9t, per the World Gold Council. Constant purchasing so far in 2025 has pushed China’s official gold holdings to 2,304.5t, 24t higher than at the end of 2024. Meanwhile, gold’s share of China’s foreign exchange reserves has increased from 5.5% to 8%. China’s incessant efforts toward building a massive gold reserve indicate a gold bull period ahead.
The Fed is likely to cut rates in the coming days to manage a weakening labor market and higher inflation. If the Fed continues its policy easing throughout 2026, gold prices may take an upper hand all over again.
Bridgewater Associates founder Ray Dalio advised investors to allocate up to 15% of their portfolios to gold, even as the precious metal surged past $4,000 an ounce, as quoted on CNBC. Dalio stressed gold’s unique role as a hedge against monetary debasement and geopolitical uncertainty.
ETFs in Focus
For investors looking to capitalize on this long-term bullish trend, gold ETFs such as SPDR Gold Trust (GLD - Free Report) , iShares Gold Trust (IAU - Free Report) and SPDR Gold MiniShares Trust (IAUM - Free Report) could prove to be great bets right now.
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Gold Under Pressure as Rate-Cut Hopes Fade: Time to Buy the Dip?
Gold prices have been under pressure in recent trading sessions, pressured by receding expectations for another U.S. interest-rate cut next month. Prices briefly slipped below $4,000 an ounce before trimming losses following a three-day slide, per Bloomberg, as mentioned on Yahoo Finance.
Investors are awaiting key data delayed by the U.S. government shutdown, while several Federal Reserve officials warned against easing policy — though Governor Christopher Waller expressed his support for a cut. Meanwhile, a gauge of the U.S. dollar held its recent gain.
Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) has added 1.3% over the past month (as of Nov. 17, 2025). Since gold underperforms in a rising dollar environment, SPDR Gold Shares (GLD - Free Report) has lost about 7.8% over the past month.
Fading December Rate-Cut Bets
Interest-rate swaps now show less than a 50% chance of a December rate reduction, a sharp decline from less than a month ago when markets had almost expected a quarter-point cut. The move has weakened the outlook for gold, which pays no yield and benefits from lower rates and a softer dollar.
Gold Still on Track for Best Year Since 1979
Despite the recent pullback, gold remains up more than 50% this year (as of Nov. 17, 2025), heading toward its strongest annual gain since 1979, per Bloomberg, as quoted on Yahoo Finance. Investors have turned to bullion as a hedge against tariff-related uncertainty, while heavy central-bank buying has helped propel the metal to a record above $4,380 last month.
Central Banks Extend Buying Spree
Goldman Sachs analysts estimate that central banks purchased 64 tons of gold in September, more than triple the August levels, per the above-mentioned Bloomberg article. India imported gold worth $14.7 billion in October, up nearly 200% year over year, as quoted on CNBC. Indian consumers are estimated to have purchased gold worth $11 billion during the five-day festival period in October.
Time to Buy the Dip?
The PBoC reported its 12th successive monthly gold addition to its reserves in October, adding 0.9t, per the World Gold Council. Constant purchasing so far in 2025 has pushed China’s official gold holdings to 2,304.5t, 24t higher than at the end of 2024. Meanwhile, gold’s share of China’s foreign exchange reserves has increased from 5.5% to 8%. China’s incessant efforts toward building a massive gold reserve indicate a gold bull period ahead.
The Fed is likely to cut rates in the coming days to manage a weakening labor market and higher inflation. If the Fed continues its policy easing throughout 2026, gold prices may take an upper hand all over again.
Bridgewater Associates founder Ray Dalio advised investors to allocate up to 15% of their portfolios to gold, even as the precious metal surged past $4,000 an ounce, as quoted on CNBC. Dalio stressed gold’s unique role as a hedge against monetary debasement and geopolitical uncertainty.
ETFs in Focus
For investors looking to capitalize on this long-term bullish trend, gold ETFs such as SPDR Gold Trust (GLD - Free Report) , iShares Gold Trust (IAU - Free Report) and SPDR Gold MiniShares Trust (IAUM - Free Report) could prove to be great bets right now.