Gold slides farther below $1200 handle, hits fresh 2-week lows

Gold remained under some selling pressure for the third consecutive session and extended its slide further below $1200 handle to two-week lows.

Currently trading around $1192 level, testing session through, the ongoing rally in global stocks is driving flows away from the yellow metal's safe-haven appeal. Adding to this, a modest greenback recovery, with the key US Dollar Index rebounding from 7-week lows, further collaborated to the offered tone surrounding the yellow metal. 

Meanwhile, a fresh wave of up-leg in the US treasury bond yields could also be attributed to the prevalent weaker sentiment around the non-yielding metal.

Today’s second tier US economic data might provide fresh impetus to the greenback and eventually drive dollar-denominated commodities – like gold, helping traders to grab some short-term trading opportunities. 

Technical outlook

Carol Harmer, Founder at charmertradingacademy.com notes, "already we have broken below the 23.6 fib level at 1197 and look poised to go on our way to the 38.2 located @ 1183....We do have this double top at 1218.....and we are below 1204 and 1197...and also the daily PP is at 1200...so we are below quite a good cluster of resistance levels...Now we do have the 18 day  M/A is 1187...so this level is quite important as well...as well as pivots we use M numbers...and these are resistance and supports added together /2...so one of the numbers today is 1188.....so there are reasons why we should see profit taking down at these lower levels...."