Breakdown of key moving averages signals momentum shift after near three-year rally, pressuring precious metals amid hawkish Fed outlook.
Gold prices fell below both the 100- and 200-day moving averages for the first time since October 2023, marking a technical breakdown after a prolonged uptrend. The drop reflects broader selling pressure in risky assets and growing investor exits from leveraged gold positions.
The decline follows a stronger-than-expected U.S. jobs report, reinforcing expectations of a more hawkish Federal Reserve. Rising inflation and geopolitical tensions, including the U.S.-Iran conflict, have further weighed on sentiment, complicating a near-term recovery.
Analysts warn the correction could deepen, with the next support level for gold emerging as a critical focus. The break below long-term averages suggests a potential shift in market momentum after years of gains.