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    Gold faces challenges above the $4,000 mark amid declining safe-haven demand and a stronger USD.

    by VT Markets
    /
    Nov 4, 2025
    **Gold Price Volatility** Gold is showing weakness during the Asian session as the US Dollar rises to its highest point since August. This increase is fueled by expectations of changes in interest rate policies. Economic uncertainty from the prolonged government shutdown and global geopolitical issues may support gold prices and prevent further declines. Technically, gold could face more drops, especially if it falls below the $3,963-$3,952 range. If it goes above $4,000, it may encounter resistance around $4,025 and $4,045-$4,046, with possible movement towards $4,100. Over the past week, the US Dollar has strengthened against major currencies, gaining the most against the Swiss Franc at 1.72%. Key pairs like EUR, GBP, and JPY have also shifted, highlighting the Dollar’s strong position in the market. With the Federal Reserve indicating a hawkish stance, the US Dollar is gaining strength, putting pressure on gold prices. The Dollar Index (DXY) has recently climbed above 107.5, reaching levels not seen since August 2025. This trend suggests that shorting gold may be profitable as long as higher interest rates are expected to last. **Geopolitical Factors and Gold** The ongoing US government shutdown adds uncertainty that could protect gold from significant drops. This shutdown is set to become the longest in US history, potentially exceeding the 35-day record from winter 2018-2019. Such domestic instability often drives traders to seek safe-haven assets, which may limit gold’s decline. Furthermore, persistent geopolitical tensions, especially recent naval conflicts in the Strait of Hormuz, contribute to a cautious sentiment. These risks could support gold prices, as any escalation may lead to a flight to safety. So, while the Dollar remains strong, there’s still a chance for a sudden rally in gold prices. Create your live VT Markets account and start trading now.

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