Gold falls to 3-week low, pulling further away from $4,000: 'The sell-off has been relentless'

Core Insights - Gold prices have declined to a three-week low, influenced by optimism surrounding a US-China trade deal, with bullion futures dropping over 1% to approximately $3,970 per troy ounce [1] - The recent decline follows a significant rally earlier in the year, where gold surged from $2,700 to around $4,350, marking the strongest rally in over 40 years [2] - Analysts remain bullish on gold, with expectations of continued Federal Reserve rate cuts supporting the precious metal's value [3] Price Movements - As of Tuesday, gold futures are up roughly 43% since the beginning of the year [3] - Current gold prices have fallen below the $4,000 level, reaching a three-week low [7] Analyst Predictions - UBS analysts project a near-term rebound for gold, forecasting a price of $4,700 by the end of Q1 2026 [3] - Bank of America analysts maintain a "long gold" recommendation, predicting a peak of $6,000 per ounce by mid-2026 [5] - Goldman Sachs has revised its forecast for gold to $4,900 per troy ounce by the end of next year, an increase from a previous estimate of $4,300 [6] Market Sentiment - Market analysts note that the current sell-off in gold has been relentless, with expectations of a potential sharp reversal when support is found [2] - The combination of macroeconomic factors, fundamentals, and momentum-driven elements is expected to support precious metals despite potential volatility [4]