Gold Slides Further Below $1250 to a Four-Week Low
As the greenback picked-up strength and some signs of stability in the
European and US equity markets emerge, the perceived safe-haven, Gold, fell to its lowest level in four weeks.
Earlier during Asian session, led by risk-off sentiment the precious
metal held its neck above $1250 mark and attempted a rebound to $1256.
The recovery, however, was short-lived and got sold into, dragging the
metal back below $1250 level and test $1243, its lowest level since
April 28.
Moreover, renewed bid tone for the greenback also seems to contribute
towards the metal's weakness on Monday, as has been the case since the
beginning of this month.
Even from technical perspective, gold has now decisively broken below
50-day SMA support near $1250 and hence, remains vulnerable to continue
drifting lower in the near-term.
Technical levels to watch
Below day's through level of $1243, the metal seems to continue drifting
lower to test its next major support near $1233-32 area. Below $1233-32
support, the metal turns vulnerable to extend its down-slide towards
its next major support near $1215 marking daily closing lows support
touched in March and April.
Meanwhile on the upside, 50-day SMA support break-point near $1250
level, now seems to act as immediate resistance. This is closely
followed by another strong horizontal resistance near $1256-58 area.
Only a sustained move back above $1256-58 resistance might negate the
near-term bearish outlook and assist the metal to appreciate further
towards its next major resistance near $1272-75 area.
