Wall Street abandons ship after gold sinks below $3,900/oz, Main Street maintains bullish majority bias as midterms, payrolls loom

(Kitco News) – Gold prices suffered another sharp weekly decline, as an early recovery gave way to heavy selling after the Federal Reserve maintained its hawkish stance, stronger U.S. economic data reinforced expectations for further tightening, and Friday's technology-led equity rout triggered widespread liquidation across precious metals.

Spot gold kicked off the week trading at $3,994.95 per ounce on Sunday evening, and the yellow metal initially pushed higher as bargain-hunting emerged following the previous week's selloff below $4,000. The recovery gathered momentum Tuesday as Treasury yields eased and the U.S. dollar softened, carrying gold back above $4,050 ahead of Wednesday's Federal Reserve policy decision. After the Fed voted 10-2 to hold interest rates steady at 3.75% to 4.00%, with two policymakers dissenting in favor of another 25-basis-point hike, spot prices ultimately set their weekly high at $4,082.50 per ounce just before the equity close on Wednesday, before sellers regained control.