Gold Slides Further, Drops Back Below $1280
Gold
weakened on Monday and extended its weakness during European session
and dipped back below $1280 to currently trade near session low of
$1279.
On Friday, gold spike to $1295 on the back of what seemed
to be poor US jobs report. However, the precious metal failed to build
onto its gains on broad US Dollar recovery on Friday. The spillover USD
strength on Monday continued to drag the metal lower, bringing it back
to an important pivot point near $1280 level.
Last week gold
prices failed to sustain above $1300 mark and Monday's fall seems to
confirm that the profit taking move from $1300 prevails, suggesting
resumption of the metal's near-term corrective move.
Technical levels to watch
The
pair is sustaining its weakness below $1280 support marking 23.6%
Fibonacci retracement level of $1207-$1303 up-move and a persistent
selling pressure below last week's daily closing lows support near $1277
should continue exerting pressure on the precious metal. Below $1277
support, gold seems to extend its weakness back towards $1268-66 support
area, nearing 38.2% Fibonacci retracement level.
Meanwhile on
the upside, $1284-85 now seems to provide some immediate resistance,
which if cleared seems to assist the pair back to its multi-month daily
closing high level resistance near $1292-93 zone. On a convincing
strength above $1292-93 resistance, the metal could make a fresh attempt
to aim back towards $1300 mark.
