Gold Holds Key Support Near $4,000 as Fed Cut Fails to Spark Rally

Core Insights - Gold prices experienced a second consecutive weekly loss, retreating below $3,900/oz before rebounding to hold $4,000/oz support [3][7] - The Federal Reserve cut rates by 0.25%, but the move was widely anticipated and did not lead to a significant rally in gold prices [6][7] - Ongoing U.S. government shutdown and muted economic data releases contributed to market caution [7] Market Dynamics - The U.S. government shutdown has persisted throughout October, impacting market sentiment and asset classes tied to the U.S. dollar [4] - Pre-FOMC jitters led to a sharp sell-off in gold prices as investors locked in profits ahead of the Federal Reserve's announcement [4][6] - Trade tensions between the U.S. and China also influenced market movements, particularly ahead of a summit between the two nations' leaders [4] Price Movements - Gold prices initially found support at $4,000/oz but fell to a low of $3,905/oz during the week [5][7] - The steepest declines in gold prices occurred during U.S. trading hours, particularly on Monday [5] - Central bank gold buying provided late-week support, helping to stabilize market sentiment [7]