Gold Price Slips Below 50-Day SMA as Risk Appetite Persists

Gold Price Slips Below 50-Day SMA as Risk Appetite Persists

Gold (XAU/USD) continues to trade under pressure on Wednesday, sliding slightly below the 50-day Simple Moving Average, currently hovering around $3,300. The metal’s movement reflects a market in risk-on mode, as tensions in the Middle East de-escalate and investors shift focus toward upcoming US macroeconomic data and further insights from Federal Reserve Chair Jerome Powell.

Risk Sentiment Dominates Market Tone

Following Tuesday’s ceasefire between Israel and Iran, demand for traditional safe-haven assets like Gold has cooled. This broader shift in sentiment favors risk-sensitive assets such as equities and high-yielding currencies, leaving Gold to consolidate around key technical support zones.

Powell’s Senate Testimony in Focus

Markets are closely watching the second day of Fed Chair Powell’s testimony before the Senate Banking Committee. Any signals regarding inflation pressures or potential shifts in monetary policy stance could directly influence interest rate-sensitive assets, including Gold.

Powell's commentary is particularly critical after recent comments that the Fed remains in "wait-and-see" mode, watching how tariff policies and other data points, including inflation, evolve over the coming months.

US New Home Sales Could Impact Dollar, Gold

Investors are also eyeing the US New Home Sales data for May, due at 14:00 GMT. Strong numbers could further validate the resilience of the US economy, potentially strengthening the US Dollar and weighing on Gold prices. Conversely, a weaker reading might reignite some safe-haven flows.

For deeper insights into how macro events affect precious metals, visit our Gold Forecast page.