Gold Falls Below $4,000 After Massive Precious Metals Liquidation

Gold falls back below $4,000 as markets experience a wave of selling that affects several precious metals. On Thursday, losses accelerated in a context marked by the rise in oil prices and inflationary fears. Despite the decline in bond yields, investors did not favor this safe haven. This drop raises questions about the strength of the upward trend and comes at a time when Peter Brandt is directly calling out Peter Schiff.

Gold falls below $4,000 after two difficult sessions

On Friday morning, in Asia, gold was trading around $3,998.72, a daily decline of 0.63%. The precious metal also hit a low near $3,986 during the session. It is now trading about 22% below its record high of $5,110.50, reached on January 26. This correction marks a significant change after the highs recorded at the start of the year.

The decline accelerated on Thursday, when sellers also hit silver and several other commodities. Silver lost 5.8%, while the yellow metal fell 2.8%. This session wiped out approximately $810 billion in market value for gold and more than $190 billion for silver. Platinum lost 4%, palladium 3.7% and copper 2.8%.

As of Friday morning, estimates pointed to more than $1.3 trillion in cumulative losses over two days for the affected metals. Silver notably reached its lowest level in eleven months. This development shows that sales far exceed a single market segment. It also raises questions about the mechanisms that triggered this wave of liquidation.

Oil and rates fuel pressure on gold

The surge in oil prices is one of the main factors of tension. Fears of conflict with Iran have prompted Brent at 112.92 dollarsafter an increase of around 3.8%. This increase revives concerns about inflation and complicates the monetary outlook. Investors are therefore reassessing the risks linked to a lasting rise in prices.

In this context, operators on the futures markets have reinforced their expectations of a rise in American rates. CME FedWatch data indicated a near 90% chance of a rate hike by the Federal Reserve in December. This outlook weighs on gold, which generates no regular income. When rates rise, interest-bearing investments may become more attractive to some investors.

At the same time, stocks linked to artificial intelligence have fallen sharply. The Nasdaq recorded its worst session since June, while the S&P 500 had its most disastrous day since July. Usually, stock market tensions can encourage purchases of safe havens. However, this time, investors turned more to Treasury bonds.

The yield on US ten-year bonds fell by about 17 basis points, to 4.96%. Inflation-adjusted yields also fell, without stopping the precious metal from falling. Some analysts cite forced sales to explain this unusual reaction. However, they emphasize that the true scale of the liquidations remains to be confirmed.

Peter Brandt questions Peter Schiff on the fall of gold

The correction also fueled exchanges between two well-known financial market figures. Trader Peter Brandt shared a chart of gold futures, but clarified that he was not making any forecasts. He nevertheless warned that a further decline could erase all the progress recorded in 2025. His comment was aimed directly at Peter Schiff, a long-time defender of the precious metal.

Brandt then challenged Schiff, emphasizing that such a scenario would not correspond to his expectations. Asked by a subscriber about the possible time frame, the trader mentioned a period of three to five years. In another response, he estimated that the upward trend of this raw material was in serious danger of running out of steam. These comments remain personal comments and do not constitute certainty about the future evolution of prices.

A few days earlier, Schiff presented a price of $4,145 as an interesting buying opportunity. Investors who followed this recommendation have since seen a decline of around 3.5%. This discrepancy illustrates the risks linked to decisions taken on the basis of market expectations. It also shows how a rapid correction can call into question a short-term strategy.

Bitcoin and technical levels: the next market benchmarks

Bitcoin did not protect investors against Thursday’s turbulence. Its price fell below $81,000despite more than $1 billion in inflows into spot ETFs. At the time of the data communicated, the cryptocurrency fell by 4.1% on the day, compared to 2.3% for gold. Both assets therefore came under selling pressure, despite their operating differences.

Over the year as a whole, performances remain relatively close. The precious metal had ended 2025 around $4,354, while bitcoin closed that period near $87,498. At around $4,000, the former shows an annual decline of close to 8% in 2026. At $81,000, bitcoin is down around 7.4%, bringing the results of the two assets closer together.

Technical analysts are now monitoring several thresholds ahead of the Fed meeting scheduled for October 27-28. Resistance located at $4,198.93 represents the first level to reconquer to consider the end of the selling wave. Below $4,000, a support zone between $3,924 and $3,942 catches their attention. If this support gives way, the next downside target is around $3,754.

Upcoming data on US inflation and monetary decisions could guide future moves. A recovery above resistance would signal a possible easing of selling pressure, without guaranteeing a lasting turnaround. Conversely, a breakdown of the support would expose prices to a further decline. The markets will therefore have to confirm their direction through the next technical levels, while investors will monitor the choices of the Federal Reserve.