Gold approaches monthly low, seems vulnerable below $4,000 amid Fed rate hike bets

Gold (XAU/USD) is currently under heavy selling pressure as it approaches its monthly low, trading below the $4,000 psychological level. This comes amid expectations of a Federal Reserve (Fed) rate hike in December, fueled by strong US economic growth and persistent inflation. Economic data released on Thursday showed resilient growth, with the third-quarter GDP growing at an annualized rate of 3.4%, and personal consumption expenditures rising by 3.6%.

In response to these factors, investors are shifting into safe-haven assets, contributing to the downward pressure on gold. Technical analysis indicates that gold is likely to continue its downward trend, potentially breaking through a support level at $3,946, and may face resistance at the $4,025-$4,030 range. The path of least resistance for gold seems to be to the downside, with a monthly loss of around 3.5% expected.