Gold Plummets Through Key Levels as Traders Flee Early Losses

According to one-hour chart data, gold plunged from a session high of $3,361.995 to a low of $3,326.305 this morning. The metal now sits at $3,327.595 per ounce, down 0.83 percent.

The swift decline marked the most aggressive sell-off since May 2. Price cut through the 20-period EMA near $3,345 and breached the 50-period SMA around $3,340.

Traders spotted support at the 200-period SMA close to $3,309, which halted deeper losses. The hourly RSI dipped below 40, while the MACD developed a bearish crossover.

Sharp volatility expanded the Bollinger Bands, and price tracked the lower band near $3,327. A Fibonacci drawdown from Friday’s peak placed the 38.2 percent retracement at about $3,340. The 50 percent level stands near $3,344, with the 61.8 percent mark close to $3,348.

Volume spiked during the fall, confirming sellers dominated the move. COMEX positions reached a net long of 804 tonnes at quarter-end, while money managers held 599 tonnes. ETFs logged inflows of 227 tonnes in Q1, marking the strongest quarterly gain since early 2022.

Investors reacted to firmer US Treasury yields and a stronger dollar after Fed minutes emphasized inflation risks. Officials held interest rates steady but warned against any premature cuts.

Gold Market Update

Market participants now eye US-China trade talks in Switzerland for clues on tariff outcomes. Central banks bought 244 tonnes of gold in Q1, adding to long-term reserve diversification.

Chinese exchanges reopened after Labor Day, lifting Shanghai premiums amid renewed retail demand. Indian 24-carat gold traded at ₹99,660 per ten grams in Mumbai on May 8, signaling steady consumption.

March ETF flows totaled $8.6 billion, reflecting robust investor appetite amid year-to-date gains near 29 percent. Sector demand in technology reached 80 tonnes in Q1 as electronics makers integrate gold into advanced components.

Technicians view $3,309 as critical support and $3,361 as the next resistance barrier. A sustained break below $3,309 could target the May 2 low near $3,220. Rebounds toward the 20-EMA and 50-SMA around $3,345–$3,340 may attract fresh buyers.

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