Gold slides to $1308 on improving global risk-appetite

After failing to build on to Monday's bullish price-gap, global risk-on trade on Tuesday is further denting the safe-haven appeal for the precious metal with the spot Gold now dropping to $1308.

The yellow metal has now erased all of its Monday's gains and has dropped over 3.5% from a two-year high level of $1358, touched on Friday following an unexpected outcome from the historic EU referendum in the UK. A strong rebound across European equity markets is further forcing investors to book profits after the metal's sharp up-surge on Friday and Monday's follow through bullish price-gap. 

However, given the uncertainty surrounding the economic implication of the UK's vote to end its membership with the European Union might restrict immediate sharp downslide for the commodity. 

Later during the NY trading session, investors will confront the release of the final US GDP print for the first quarter of 2016 along with the Conference Board's Consumer Confidence index, which might assist traders to grab some short-term trading opportunities.

Technical levels to watch

From current levels, weakness below $1300 psychological mark support is likely to get extended immediately towards $1290 support. Sustained break below $1290 support is likely to trigger a fresh leg of corrective move, dragging the commodity initially towards $1275 intermediate support before heading towards 50-day SMA support, currently around $1260 region.

Meanwhile on the upside, $1324-25 zone now seems to have emerged as immediate resistance. A strong buying interest above $1325 resistance set the stage for resumption of the near-term bullish momentum, assist the metal to retest Friday's swing highs resistance at $1358 before extending the momentum towards 2014 yearly highs resistance near $1390-95 area.