Gold skids as safe haven demand dampens

Gold saw a sell-off in trade where the price slipped over 1% intraday as global risk-on trades resumed. Earlier, the metal had hit a fresh 8-week high just couple of days back on surge in safe haven demand due to economic uncertainties led risk-off trade which was a key driver of the price increase over the past 30 days.

Technically gold broke $1195, a reasonable support/buying area in the single trading session pushing the prices to a low of $1183.5 and testing a crucial support. This zone of $1182-$1184 is a key support for the yellow metal and it must hold. Whereas, a failure to do so could be a game over for the bulls as the metal can go down towards recent lows of $1136 levels and maybe even lower.

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