Gold slipped further towards $1180.5 as rally in global stocks continues, sudden turn in demand of the yellow metal was due to risk-on trades worldwide regaining lost interest along with a stronger dollar. All the fears and worries about U.S policies and Fed rate hikes took a backseat as investors turned positive on risky-asset class dampening the demand for the yellow metal which gave the bears additional ammunition to push back the price lower towards the key support zone.
Technically gold broke $1195 mark yesterday, which today was followed by incremental selling seen in the Asian trading session where the metal broke its key support zone of $1182-$1184 sliding towards $1180.5. This price move suggests a violation of the support but it will only be confirmed if the metal closes below it today. The zone of $1182-$1184 is a key support area of the yellow metal which must hold to keep bulls in the game. A violation will be a bearish sign and the price may fall towards its recent lows of $1136 and even lower. Today’s closing is crucial and decisive for the price movement in either of the directions.