Gold futures retreated significantly on Wednesday as the precious metal faced its fourth declining session in the past six trading days, finding technical support at a critical moving average.

Gold futures edged higher Tuesday as the dollar weakened following the release of April's inflation data showing consumer prices rose at their slowest pace in four years. The most active June 2025 gold futures contract gained $14.90, or 0.46%, settling at $3,256.90. 

Gold prices tumbled Monday as landmark trade agreements between the United States and two major trading partners—China and the United Kingdom—significantly strengthened the US dollar and altered the economic landscape for investors.

Gold prices staged an impressive recovery this week, nearly erasing last week's losses as investors sought safe-haven assets ahead of critical trade negotiations between the United States and China scheduled for this weekend in Switzerland.

Gold futures retreated Wednesday as investors responded to the Federal Reserve's unanimous decision to maintain its benchmark interest rate between 4.25% and 4.50%, where it has remained since December 2024. The precious metal closed near its daily low, with the most active June 2025 contract settling at $3,391.90, down $30.90 or 0.9% from its opening price of $3,448.10.

Gold prices are surging to unprecedented heights in 2025, with back-to-back gains suggesting another parabolic price movement could be imminent. The precious metal has shattered multiple records this calendar year, building on an impressive 80% increase since October 2024, translating to a gain of $1,564.10 over just 14 months.

Gold staged a remarkable comeback in Monday's trading, completely erasing last week's losses as investors positioned themselves ahead of the Federal Reserve's highly anticipated interest rate announcement.

Gold concluded the week with minimal activity, as the most active June futures contract settled at $3,247.40, down a mere $0.90 or 0.03% on Friday. This subdued performance follows three consecutive days of notable declines after Monday's $24 gain. The precious metal retreated $27.20 on Tuesday, $28.40 on Wednesday, and $50.90 on Thursday.

As of 6 PM ET, gold's most active June futures contract fell $50.90 to $3,248.30. This week's decline of $81.90 (2.46%) from Monday's opening of $3,336.50 marks the third consecutive day of losses, coinciding with reports that the U.S. economy contracted in Q1 2025.

00:00 Introduction 

00:55 Gold's Recent Performance and Technical Analysis

01:33 Dollar's Impact on Gold Prices