ETF Outflows and Rate Expectations Push Gold Below $4,000

Persistent outflows from gold-backed exchange-traded funds (ETFs) have driven spot gold prices below the $4,000 per ounce level for the first time since November 2025. Increased risk appetite among investors and hawkish interest rate expectations from the U.S. Federal Reserve (Fed) have intensified selling pressure on gold, which is traditionally seen as a safe-haven asset. Market participants suggest that if ETF outflows continue, gold could see further declines. Strengthening rate hike expectations boost demand for alternative yield-bearing assets, reducing gold's appeal. Analysts note that the $4,000 level is being watched as a psychological support for gold; a sustained break below this level could accelerate selling. However, geopolitical risks and inflation concerns are cited as factors that could keep demand for gold alive. As investors closely monitor Fed policy cues and ETF flow data, gold prices are expected to remain highly volatile in the near term. This is not investment advice.