Why Gold Is Going Down? Metal Falls With Bitcoin 4th Day in a Row and Gold Price Prediction Remains Bearish ⋅ Crypto World Echo
Gold price extendedlosses for a fourth consecutive session, trading today (Thursday), 30 October2025, at $3,972.30 per ounce (-0.71%) after Federal Reserve (Fed) ChairmanJerome Powell walked back market expectations for a December rate cut,strengthening the dollar and pressuring precious metals.
Theextended selloff has pushed gold 8.9% below last Friday’s $4,144 level, withthe metal testing $3,915 on Wednesday before Thursday’s modest 0.8% reboundfailed to reclaim the psychologically critical $4,000 threshold.
The dollaris strengthening, Bitcoin is also falling, and traders are asking why gold isdown today. In this article, I conduct technical analysis of the XAU/USD andBTC/USDT charts to answer that question and review the latest gold pricepredictions.
Why Gold Price Is FallingToday? Fed’s Powell Walks Back December Cut Expectations
The FederalReserve’s rate cut Wednesday, while expected, came with hawkish commentary thatcaught markets off guard. Peter Grant, VP and senior strategist at ZanerMetals, noted: “Gold had a logical reaction to Powell trying to walk backexpectations for a December cut. We’re already seeing Fed funds futurestrimming expectations, that would be dollar positive and gold negative.”
The dollarindex surged to 99.36 following Powell’s comments, one of the highest levelssince August, as traders reduced bets on another rate cut in December.Yesterday’s declines were mainly caused by dollar strengthening after the Fed’srate cut decision, which boosted the DXY index to this elevated level.
Chair Powell reads opening statement at the #FOMC press conference on October 29, 2025: https://t.co/ZDw8oqy6g3
— Federal Reserve (@federalreserve) October 29, 2025
Togetherwith gold, Bitcoin is also falling for a fourth consecutive session, oftencalled “digital gold,” testing intraday lows below $108,000 Thursday.As a result, BTC prices are again declining below the support zone around$110,000 and stopping at the 200 EMA, combined with the 38.2% Fibonacciretracement and a broad support zone marked by July and September lows alsotested in October (extending down to $105,000).
MichałStajniak, analyst at XTB, also explained Wednesday’s catalyst: “The Feddecided to cut interest rates by 25 basis points to the 3.75-4.00% range, inline with market expectations. Powell indicated during the press conferencethat the December decision is not certain, and opinions among FOMC members arestrongly divided. EUR/USD retreated below 1.1600 after this information.”
However, inmy view, the dollar will weaken in the longer perspective, which will alsotranslate into growth for both gold and Bitcoin. Nonetheless, in the short termwe can see some deepened correction.
Gold Price Analysis ShowsBearish Pin Bar
Accordingto my technical analysis, gold prices have now experienced four consecutivedeclining sessions, correcting significantly from the $4,144 level observedlast Friday to $3,915 noted yesterday. Although Thursday, October 30, 2025brings a modest rebound of 0.8% and a test of the $3,982 level per ounce,precious metal prices remain below the psychological $4,000 barrier.
Simultaneously,as my technical analysis shows, Wednesday drew a bearish pin bar on the dailychart under this psychological resistance, which generates a sell signal andthe possibility of a stronger correction toward the support zone between $3,275and $3,441, which I wrote about in my earlier analysis in this place. This zoneis simultaneously strengthened by the 200 EMA, and from current levels goldcould decline by 17%, asI mentioned in my previous gold analysis.
It’s truethat gold still has the 50 EMA ahead of it, above which it has movedcontinuously since the beginning of 2025. Historically, however, this averagehas not proven to be as strong support as the aforementioned 200-day indicator.The 50-day moving average currently sits at $3,776.45, representing the firstmajor technical test if the current correction extends.
Bitcoin CorrelationHighlights Risk-Asset Weakness
Unlikegold, on the BTC/USDT chart I would expect a chance for a rebound and, in themedium term, a return to the vicinity of the ATH around $126,000, which wouldcertainly also help gold. For that matter, on gold, like analysts at majorbanks, I also forecast a return to the price discovery phase in the mediumterm.
Theparallel weakness in both gold and Bitcoin, each declining for four consecutivesessions, highlights a broader risk-asset rotation rather than isolatedprecious metal weakness. Bitcoin testing support below $110,000 and findingbuyers at the 200 EMA zone suggests digital assets face similar technicalpressure as traditional safe-havens.
Why am Imentioning Bitcoin when talking about gold? Among other reasons, because inrecent days the two have been moving in tandem, a trend seen especially whengold posted its sharpest one-day drop since 2020.
Thecorrelation between these assets typically strengthens during periods of dollarstrength, as witnessed following Powell’s hawkish Wednesday comments. Volume ingold futures surged to 64,749 contracts, 34 times the average of 1,879, indicatingheavy institutional selling pressure and potential capitulation among leveragedtraders.
Gold Price Prediction: Long-TermInstitutional Forecasts Remain Bullish
Despite thenear-term bearish technical setup, major financial institutions maintainaggressively bullish medium-term forecasts. JP Morgan projects gold averaging$5,055 per ounce by Q4 2026, a 27% premium to current $3,972 levels, while GoldmanSachs targets $4,900 by December 2026, representing 23% upside.
Theseinstitutional forecasts provide important context for the current 4-daydecline. While technical indicators suggest potential for further near-termweakness toward the $3,776 or even $3,275-$3,441 support zones, the strategicoutlook remains positive based on structural demand drivers that transcendshort-term Fed policy uncertainty or dollar strength.
MorganStanley recently revised its 2026 forecast upward to $4,400 per ounce, whileMetals Focus sees gold reaching $5,000 in 2026 as uncertainty persists acrossglobal markets. The convergence of these bullish institutional views, allsignificantly above current spot prices, suggests sophisticated analysts viewthe correction as a buying opportunity rather than the start of a prolongedbear market.
Before you leave, please also check my previous analysis with Bitcoin and gold price predictions:
Gold Price Analysis, FAQ
Why is gold falling for 4days straight?
Golddeclined fourth consecutive session to $3,972.30 (-0.71% Thursday, -4.14% fromFriday $4,144) triggered by Federal Reserve Chair Powell walking back Decemberrate cut expectations during Wednesday press conference, strengthening dollarto 99.36 (highest since August), with Peter Grant (Zaner Metals) noting”Powell trying to walk back expectations for December cut” proving”dollar positive and gold negative,” while bearish pin bar formedunder $4,000 resistance generating technical sell signal.
Is gold crash over or willit continue declining?
No. Accordingto my technical analysis, Wednesday’s bearish pin bar under $4,000psychological resistance generates sell signal with potential 17% downsidetoward $3,275-$3,441 support zone (200 EMA confluence), though 50 EMA at $3,776represents first major test, with RSI remaining elevated suggesting correctionincomplete, but everything above 200 EMA maintains uptrend definition and JPMorgan/Goldman Sachs forecasts $4,900-$5,055 by 2026 viewing weakness as buyingopportunity.
How low will gold pricesgo in 2025?
Mytechnical analysis identifies first downside target at 50-day EMA $3,776.45 (5%below current $3,972), with main support zone $3,275-$3,441 coinciding with200-day EMA $3,316 representing 17% decline potential, though volume surge to64,749 (34x average) suggests capitulation may be approaching, while long-termforecasts remain bullish with Trading Economics $4,157 Q4 2025, Goldman Sachs$4,900 Dec 2026, JP Morgan $5,055 Q4 2026.
Why are Bitcoin and goldboth falling?
Bitcoindeclined fourth consecutive session testing below $108,000 alongside gold’sparallel weakness, with both assets pressured by dollar strength (DXY 99.36after Powell’s hawkish comments) indicating broad risk-asset rotation, thoughmy analysis expects Bitcoin chance for rebound toward $126,000 ATH in mediumterm which would help gold, as longer perspective dollar weakness from Fedeasing bias and fiscal deficits will translate into growth for both gold andBitcoin.
This article was written by Damian Chmiel at www.financemagnates.com.
