Gold Price Slumps as Traders Mull Fed Rate Outlook
What Triggered Gold’s Sharp Decline in Early November 2025?
Federal Reserve Policy Shift Creates Market Uncertainty
Gold price slumps as traders mull rate outlook following the Federal Reserve’s October 29, 2025 meeting. While the central bank delivered an anticipated 25 basis point reduction, bringing the federal funds rate to the 3.75%-4.00% range, Chair Jerome Powell’s subsequent messaging diverged sharply from the accommodative tone that had supported precious metals throughout the autumn rally.
The market repricing was swift and severe. December rate cut probabilities plummeted from 94% to approximately 70% within a two-week period, according to Bloomberg calculations derived from futures market pricing. This shift…
