Gold futures dipped as central banks flipped to net sellers.

Bob Iaccino analyzes the recent price action in June Gold futures, noting that despite finishing lower for a second consecutive session, the metal is stabilizing above the crucial 4,800 level and its 50-day moving average at 4,795.10. A major fundamental shift is occurring as central banks, which have been structural buyers for three years, are now becoming net sellers to defend their currencies against a firmer U.S. dollar and rising energy costs. Additionally, the U.S. dollar bounced off a six-week low, further pressuring bullion. Geopolitical risks remain with the Strait of Hormuz blockade, but traders utilizing gold as a pure war hedge are stepping back, allowing currency channels to drive the market. The next major event for gold traders to monitor is the April 29 Federal Reserve meeting.