Gold slides below 100-DMA for the first time since early June

Extending its weakening trend for the sixth consecutive session, Gold on Tuesday dropped below 100-day SMA to test the lowest level since September 16. 

Currently hovering around $1308 region, below 100-day SMA for the first time since early June, the prevalent risk-on sentiment is denting the precious metal's safe-haven demand. Moreover, a broadly stronger US Dollar, on the back of Monday's upbeat US manufacturing data, is exerting further selling pressure on dollar-denominated commodities - like gold. US economic data released on Monday showed ISM manufacturing PMI rebounding back into expansion territory and surpass consensus estimates by printing 51.5 points for the month of September. 

With a relatively thin economic docket, prevalent risk sentiment would be the sole driver of the yellow metal's next leg of move on Tuesday. However, the key determinant of the metal's near-term trajectory would be the upcoming US monthly jobs report on Friday, which has been know for generating substantial volatility across global financial markets and would eventually provide fresh impetus for bullion traders.

Technical levels to watch

A follow through selling pressure now seems to drag the commodity immediately towards $1300 handle support and the downward trajectory could further get extended towards its next major support near $1290 level. 

Meanwhile on the upside, $1312-13 area now becomes immediate resistance, which if cleared seems to assist the commodity back towards $1320 resistance area. Any further recovery beyond $1320 resistance might be limited and is likely to be capped at 50-day SMA resistance near $1330-31 region.