Gold falls below $4,000, weighed down by the tech plunge on Wall Street

Gold loses the 4,000-dollar threshold amid the selling wave in Wall Street tech stocks, while refuge capital turns to U.S. debt.

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The value of the ounce of gold has fallen below the psychological threshold of 4,000 dollars, returning to levels similar to those recorded in July, in a scenario dominated by the sharp declines on the stock market of the large U.S. technology companies after releasing their third-quarter results.

Specifically, the price of the precious metal was retreating 3.28%, to 3,899 dollars, at the close of European markets. In this way, gold accumulates a correction of 11.17% in 2026 and 2.21% in the last twelve months.

According to XTB analysts, this adjustment in the price of gold is explained because the strong sell-offs in the technology sector and the margin calls "forced investors to liquidate liquid assets to obtain cash".

Although traditionally gold functions as a safe-haven asset when investors move away from risk, the experts at XTB detail that, on this occasion, the capital seeking protection "is flowing mainly toward U.S. Treasury bonds", which are on track to post their best month since February 2025.

"Curiously, the increase in bond prices, which causes a drop in their yields, is occurring at the same time that oil prices are rising. This reduces the liquidity available in the stock market and drags gold toward the downward trend", point out the firm.

In parallel, this week the monetary policy meeting of the Federal Reserve of the United States (Fed, by its acronym in English) was held, which decided to keep interest rates unchanged, although it left open the possibility of a new increase before the year ends.

"A solid economy and accelerating inflation reduce the Fed's arguments for easing its monetary policy and, at the same time, weaken the prospects for gold gains", underscores the XTB investment team.

Despite the recent pullback, asset managers such as WisdomTree foresee a new boost in the price of the ounce to around 4,800 dollars by the third quarter of 2027, supported by "institutional and central bank demand".

"The risk of fiscal dominance could reinforce gold's appeal as a store of value if Government financing pressures undermine confidence in monetary policy", says the head of commodities and investment strategies at WisdomTree, Nitesh Shah.