Gold turns flat at $1318, near-term bullish momentum seems intact

Gold attracted fresh bid near session low level of $1313 that assisted the precious metal to erase all of its early losses and turn higher before retracing to currently trade with only marginal gains at $1318.

Earlier during the day, the yellow metal was weighed down by broadly stronger US Dollar. However, post-Brexit political uncertainty in the UK benefitted the safe-haven appeal of gold and assisted it to recover from lower levels.

Looking at the broader picture, the ongoing corrective move could be categorized as a consolidation phase before the metal resumes its bullish momentum amid uncertain global environment, especially after the UK voted to end its membership with the European Union.

From technical perspective, Tuesday's rebound from $1305 level coincided with 50% Fibonacci retracement level of the Brexit-led sharp up-surge. Hence, a follow through buying interest would confirm resumption of the near-term bullish momentum and assist the commodity to scale new heights in the near-term.

Technical levels to watch

Strong bullish momentum above $1325-30 immediate resistance, nearing 23.6% Fibonacci retracement level, should assist the metal to retest Friday's swing high level of $1358 level. The momentum could further get extended immediately towards $1370 marking 61.8% Fibonacci expansion level. 

Meanwhile on the downside, $1300 level remains immediate strong support, which if broken might trigger a near-term corrective move, immediately towards $1275 intermediate support before heading towards 50-day SMA support, near $1260 region.