Gold price weakens farther below $1300 mark

London (May 28)  Gold remained under some selling pressure for the second consecutive session on Monday and weakened farther below the $1300 handle.

The precious metal extended last week's rejection slide from the very important 200-day SMA and was further weighed down by fading safe-haven demand amid easing geopolitical jitters. Talks for a summit between the US President Donald Trump and North Korean leader Kim Jong Un was back on track and triggered a fresh wave of global risk-on mood.

Adding to this, the latest political development in Italy, wherein the President Sergio Mattarella rejected the proposal to appoint a eurosceptic candidate as economy minister further dented the precious metal's safe-haven appeal and collaborated to the heavily offered tone.

Meanwhile, a sharp US Dollar corrective slide, which tends to underpin demand for the dollar-denominated commodities - like gold, did little to lend any support and stall the ongoing slide back to the $1295 region.

With the US markets closed in observance of Memorial Day, broader market risk sentiment might continue to act as an exclusive driver of the commodity's move as the focus now shifts to this week's important release of the keenly watched US monthly jobs report.

Technical levels to watch

Immediate support is pegged near the $1293-92 region, below which the commodity is likely to head back towards testing $1286-85 support area. On the upside, the $1300 round figure mark now seems to act as an immediate resistance, which if cleared could lift the metal back towards 200-DMA hurdle near the $1307 region.

FXstreet

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