Gold Falls Below $4,000, Erasing Its Summer Gains as Market Correlations Break Down

Spot gold fell below $4,000 per ounce during Friday trading, its first move below that level since July, and was down 0.6% intraday. The decline has erased gold's gains since August, according to independent precious-metals analyst Jesse Colombo. The move was notable because gold fell while the dollar index and US Treasury yields were also declining, a divergence Colombo described as unusual. A weaker dollar and lower Treasury yields would typically support precious metals, but neither provided support in this session. Colombo said possible explanations include liquidation linked to selling in AI-related and technology stocks, or suspected yen intervention that may have offset potential dollar strength. He stressed that yen intervention had not been confirmed. The immediate technical focus is the $3,900-$4,000 per ounce support range, where gold found support during the summer before rebounding. A sustained break below that range would require further assessment of whether the decline reflects a liquidity-driven selloff or a deeper trend reversal.