Gold Reclaims $4,000 as Tech Selloff Rattles Global Equities

The broader equities market faced significant pressure, with the S&P 500 shedding 1.0% and the Nasdaq Composite retreating 1.4% amid a widespread decline in semiconductor shares. European indices mirrored this weakness, as technology-driven volatility and ongoing geopolitical tensions in the Middle East dampened sentiment. While gold managed to find a floor above the $4,000 mark, the metal’s gains were capped by a resilient U.S. dollar and elevated oil prices, which kept the specter of Federal Reserve rate hikes firmly in play.

Economic data released throughout the week further complicated the outlook. While inflation indicators like CPI and PPI showed signs of cooling, labor market resilience—underscored by recent jobless claims and the University of Michigan’s sentiment index—tempered expectations for a dovish Fed pivot. September rate-hike odds remained locked near 50%, with the 10-year Treasury yield holding at 4.53%. Meanwhile, the situation in the Strait of Hormuz continues to inject a war-risk premium into crude oil, leaving gold in a tug-of-war between safe-haven demand and the inflationary pressures of rising energy costs.