Gold Trades Lower, But Finds Support at the 50-Day Simple Moving Average

Gold futures retreated significantly on Wednesday as the precious metal faced its fourth declining session in the past six trading days, finding technical support at a critical moving average.

The most active June 2025 futures contract opened at $3,254.10 before sliding to an intraday low of $3,170.70 in New York trading. By the 4:00 PM ET close, gold had recovered slightly to $3,180.30, representing a substantial net decline of $74.10, or just over 2.25% from the previous session.

Today's low tested but held above the 50-day simple moving average, currently positioned at $3,173.30, providing a key technical floor for the metal that has retreated considerably from its May 7th opening price of $3,448.

"It's another sizable loss for gold, which is representative of fund traders cutting another gigantic chunk of length from the gold spec position," noted Robert Yawger of Mizuho Securities USA.

The decline pushed gold to its lowest closing price in over a month despite a weaker U.S. dollar—typically a supportive factor for the metal. Analysts attribute this divergence to investors pivoting from safe-haven assets toward risk-on positions in equity markets.

"With tariff rollbacks on both sides and negotiations showing real progress, investors are getting more comfortable, moving back into equities," explained Razaqzada, market analyst at Forex.com.

Recent diplomatic developments appear to be driving this sentiment shift. The pullback followed fresh trade agreements between the United States and both China and the United Kingdom. Additionally, geopolitical tensions have eased as Ukraine and Russia prepare for cease-fire talks scheduled for Thursday in Turkey, while a weekend agreement ended a brief military conflict between India and Pakistan.

Ole Hansen, head of commodity strategy at Saxo Bank, observed that "A ceasefire between Pakistan and India, as well as intense focus on a Russia-Ukraine solution... helped lower the geopolitical temperature, reducing the need for safe havens."

The consolidation comes as market participants also assess growing optimism around potential Federal Reserve interest rate cuts later this year, which could eventually provide support to non-yielding assets like gold after this current period of profit-taking subsides.

Wishing you as always good trading,