Gold tumbles to fresh weekly lows, headed for its first weekly declines in nearly a month

Gold prices slipped further during early NA session and broke below $1270 level to refresh weekly lows.

The yellow metal remained well offered for the third consecutive session and extended retracement from the vicinity of $1300 round figure mark, multi-month tops touched earlier this week. 

Today’s downslide was primarily driven by broad based US Dollar strength, primarily led by intense selling pressure around the British Pound after UK PM Theresa May failed to win an overall majority. 

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Despite of the shocking UK election result, which pushed the country into a new bout of political turmoil before Brexit talks, bullish sentiment surrounding risk associated space – like equities, further weighed on the precious metal’s safe-haven appeal.  

Moreover, Thursday’s highly anticipated testimony by former FBI Director James Comey’s did little to rattle the markets and provided an additional boost to the greenback, which eventually dented demand for dollar-denominated commodities – like gold. 

Nevertheless, the commodity has snapped three consecutive weeks of winning streak and is now all set for its first weekly losses since mid-May amid absent economic releases from the US.

Technical levels to watch

Currently trading around $1267 level, a follow through selling pressure has the potential to drag the metal back towards $1261 support en-route $1255 horizontal level. On the upside, $1270 level now seems to act as immediate resistance, which if cleared might trigger a short-covering bounce towards $$1278-79 region.

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