Gold on the front foot amid flight to safety

Gold set-off a new week on a firmer footing, with the bulls extending last week’s bullish momentum amid ongoing concerns over Brexit shock and emergence of a Fed rate cut chatter.

Gold recedes below $ 1330 mark

Currently, gold jumps +0.96% to 1228, having posted day’s high at 1333.62 and day’s low at 1322.82. Markets continue to weigh the consequences of the Brexit decision on the global growth prospects and hence, prefer to park their funds in the ultimate safe-haven gold.

Moreover, fresh chatter doing the round that the Fed could cuts rates this year as Brexit poses a threat to the US economy, further boosts the bids for the bullion.

Markets now await ECB President Draghi’s opening remarks at the European Central Bank Forum, in Sintra, where he could throw fresh light on the Brexit issue.

Gold Technical Levels                                   

The metal has an immediate resistance at 1358.41 (multi-week high) and 1370 (Jun 22 high). Meanwhile, the support stands at 1300 (round figure) below which doors could open for 1288 (10-DMA).