Gold News: 50-Day Moving Average Under Pressure as Bears Eye $3310

Gold Slides Below $3350 as 50-Day Moving Average Comes Into Play

Spot gold plunged on Monday after an early push to $3401.40 quickly reversed, dragging prices down to test the 50-day moving average at $3349.70. This key technical level is now setting the tone for the session, with traders gauging whether buyers will step in or whether momentum selling will extend losses toward the major pivot at $3310.48.

At 12:34 GMT, XAU/USD is trading $3349.94, down $47.82 or -1.41%.

Tariff Uncertainty Pressures Bullion Prices

Gold’s drop comes as markets await clarity from the White House on potential tariffs on bullion imports. Futures prices had surged to a record $3534.10 on Friday after reports of new U.S. duties on 1 kg gold bars. However, the rally faded as traders reassessed the long-term impact, with U.S. gold futures for December delivery sliding 2.5% to $3404.90. The White House has indicated an executive order will be issued soon to clarify its position on the tariffs, a move that could significantly impact bullion flows and global pricing.

Eyes on U.S. CPI Data and Fed Rate Path

The next major driver for gold could come from Tuesday’s U.S. consumer price index release. Market consensus expects core CPI to rise 0.3%, pushing the annual rate to 3%—well above the Federal Reserve’s 2% target. Stronger inflation could dampen rate-cut bets, while a softer reading may lift spot gold back above the $3400 psychological level. Current market pricing reflects nearly a 90% probability of a September Fed rate cut, with expectations for at least one more by year-end.

Geopolitical Headlines Reduce Safe Haven Appeal

On the geopolitical front, safe-haven demand eased slightly as expectations grew for progress in peace talks between Ukraine and Russia. U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday, with discussions likely focused on ending the conflict. Meanwhile, the deadline for a U.S.-China tariff agreement is expected to be extended beyond Tuesday, providing some relief to broader trade risk sentiment.

Gold Prices Forecast – Bullish Rebound or Deeper Correction

The 50-day moving average near $3350 is the key pivot. Holding above it could trigger fresh buying and a push toward recent highs, while a break below would likely accelerate selling toward support at $3310.48.

Given the pending CPI release, tariff clarity, and geopolitical developments, short-term volatility is likely to remain elevated, with gold’s next directional move hinging on both technical factors and key fundamental drivers.

More Information in our Economic Calendar.