Gold Retreats from Record Highs as Trade Optimism and Fed Stability Ease Safe-Haven Demand

Gold prices have taken a breather after a meteoric rally, pulling back below $3,320 per ounce on Wednesday following a record high of $3,502.81 in the previous session. The precious metal’s sharp reversal is visually captured in the latest 4-hour chart, which shows gold forming a classic “lower high” after testing its upper resistance zone.

The sell-off comes in the wake of renewed optimism over the de-escalation of US-China trade tensions and calming signals from the White House regarding the independence of the Federal Reserve. Treasury Secretary Scott Bessent struck a hopeful tone on Tuesday, saying he expects a resolution to the trade conflict with China soon, labeling the long-standing tariff war as “unsustainable.”

Adding fuel to the easing sentiment, President Donald Trump stepped back from his confrontational stance on Fed Chair Jerome Powell, signaling a potential end to recent market jitters surrounding central bank independence.

Technically, gold is now testing a crucial support zone marked as S1 ($3,285.28 – $3,246.61). A sustained break below could open the doors toward deeper support at $3,166.63 or even $2,959.04. However, bulls may still find buying interest near these levels, especially if fresh geopolitical risks or economic uncertainties resurface