Gold: Bears in Control as Price Slides Below Key Moving Averages
- The price of gold futures is under pressure as President Donald Trump's decision to postpone imposing tariffs on the European Union shifts the landscape of US-EU trade relations.
- The shift in trade policy has contributed to bearish sentiment in gold markets.
- Gold's conventional safe-haven appeal is waning, leaving investors uncertain about maintaining their positions.
Gold Futures Face Bearish Pressure Amid Trade war Developments
Updated may 29, 2025
The price of gold futures is under pressure as President Donald Trump’s decision to postpone imposing tariffs on the European Union shifts the landscape of US-EU trade relations. This development has investors reassessing the potential for a costly trade war and its broader economic implications.
The shift in trade policy has contributed to bearish sentiment in gold markets. A strengthening U.S. dollar, coupled wiht a weakening Japanese Yen due to declining Japanese bond yields, has further dampened investor appetite for the precious metal.
Gold’s conventional safe-haven appeal is waning, leaving investors uncertain about maintaining their positions. Market participants are closely watching for further actions by the U.S. president that could mitigate the negative effects of trade tariffs on major trading partners, influencing the direction of gold prices.
Recent trading patterns reveal continued selling pressure on gold futures. Despite a brief bullish attempt last week to test resistance at $3,396, prices remained indecisive below the $3,386 mark on Monday. This resulted in a bearish doji formation on the daily chart, signaling a potential selling spree.
Technical analysis of gold futures indicates a pivotal point in the one-hour chart. Repeated attempts to surpass the 100-day moving average (DMA) have attracted sellers. The formation of bearish crossovers, where the 9-day and 20-day dmas have pierced the 50-day DMA, suggests further downward momentum. A sustained trade below the 9-day DMA could lead to a test of the 200-day DMA at $3,283, potentially triggering more aggressive selling.
Conversely, if gold futures can sustain above the 50-day DMA at $3,358, bears may target $3,384. The daily chart reinforces the bearish outlook, with a bearish hammer formation following the previous day’s bearish doji. A break below the $3,297 support level could push gold futures toward the 50-day DMA at $3,224, with further declines potentially reaching $3,119.
The weekly chart shows a potentially bearish candle forming. Confirmation of this trend would require a break below the 9-day DMA at $3,271 this week.
What’s next
The direction of gold futures hinges on upcoming policy decisions and market reactions. Any delays by the U.S. President in addressing trade war concerns could trigger indecisive movements in precious metals, creating volatility in the market.