Gold prices are accelerating downward after breaching a critical technical level, with Societe Generale strategists warning the precious metal could test lows not seen since October 2025. The yellow metal extended losses following its break below the 50-day moving average in March, signaling deteriorating momentum for the traditional safe-haven asset.
The decline comes as traders and investors watch for potential stabilization signals, though Societe Generale analysts caution that none have emerged despite the stretched nature of the current move. The bank’s strategists indicate the metal is now drifting toward support levels established in late October, representing a significant retreat from recent peaks.
Market participants should monitor these October lows closely as a breakdown could trigger additional technical selling pressure. The lack of rebound indicators suggests gold remains vulnerable to further downside in the near term, potentially impacting gold miners, ETF positions, and currency pairs traditionally correlated with precious metals movements.
FXnCO Insight
Traders should watch for volume spikes near October support levels as potential entry points, but avoid catching falling knives until clear reversal patterns emerge.
Source: FXStreet