Gold prices experienced a second consecutive weekly loss, dropping below $3,900/oz before rebounding to hold $4,000/oz support. The Federal Reserve cut rates by 0.25%, failing to spark a major rally. Central bank gold buying provided late-week support. The U.S. government shutdown and muted economic data kept markets cautious.

Gold prices faced pressure as the U.S. government shutdown continued and investors awaited the FOMC meeting. Trade tensions between the U.S. and China also influenced market sentiment. The steepest drops occurred on Monday, with gold finding support at $4,000/oz. Expectations for a rate cut led to a lackluster market response.

The Federal Reserve announced a second rate cut of -0.25% on Wednesday, meeting expectations. Gold prices recovered to near $4,000 but failed to rally significantly. The market response may be due to Chair Powell’s cautious stance on future rate cuts. Gold remained stable around $4,000 on Thursday, buoyed by some positive factors.

Gold’s ability to maintain its current levels remains uncertain due to the ongoing U.S. government shutdown and upcoming FOMC decisions. Traders will monitor the economic impact of the shutdown and any new information from key FOMC officials. The market outlook for the coming week is uncertain, with gold prices holding at $4,000 but facing potential volatility.

Read more at Yahoo Finance: Gold Holds Key Support Near $4,000 as Fed Cut Fails to Spark Rally