Gold's $4,000 Milestone Exposed the Gap Between Momentum and Fundamentals

Gold breached $4,000 per ounce on October 8, 2025, fueled by the US shutdown and French political turmoil. By November 4, spot fell 1.5% to $3,939 as those catalysts faded and dollar strength resumed. The retreat revealed how round-number breakthroughs attract short-term positioning that unwinds once event risk subsides—yet sovereign debt concerns and central bank demand that underpinned the rally remain structurally intact.