Gold remained heavily under pressure through yesterday's session as prices tumbled to new yearly lows below the $1275 level. A fresh wave of global risk-on trade, fueled by easing concerns over a global slowdown and optimism over a possible US-China trade deal, continued dampening the precious metal's perceived safe-haven demand and kept exerting downward pressure for the fourth consecutive session. This coupled with a goodish pickup in the US Treasury bond yields further collaborated towards driving flows away from the non-yielding yellow metal.
Gold prices dropped to a new 3.5 months lows below the $1275 level during yesterday's session as they broke all near terms support levels. The price is currently in a corrective move to retreat from the oversold zone, trading just below the 1280 resistance level. We will be focusing on the 1282.19 resistance level before expecting another plunge to new lows.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19