Gold tests $4,000 support as hawkish Fed shift darkens outlook; fourth straight weekly drop in sight

Gold is heading into a pivotal week as prices hover near what traders now view as critical support around $4,000 an ounce. The metal is on pace for a fourth consecutive weekly decline, marking its longest losing streak since August 2023. Market momentum has weakened in recent months after the war in Iran disrupted global energy flows, pushing oil prices higher and stoking inflation concerns. Those concerns are gaining traction after the Federal Reserve pivoted from a loosening bias to a more hawkish posture, signaling it could support a rate hike by year-end. Analysts also point to steady U.S. economic activity despite the energy shock as reviving an "American Exceptionalism" trade, adding support to the U.S. dollar and further pressuring gold. Full story at Kitco.