Gold tumbles below $1300 psychological mark

The downslide in Gold has gained momentum in the past hour of trading and the metal has now broken below $1300 handle to hit its lowest levels since the historic Brexit referendum. 

Currently trading at over three-month low around $1297, Gold traded weaker for sixth straight session amid prevalent risk-on sentiment. Global risk-friendly environment is also denting demand for perceived safe-haven assets and is exerting further selling pressure around the precious metal. 

Moreover, the greenback extended its overnight gains led by a strong rebound in the US manufacturing activity and is seen weighing on dollar-denominated commodities - like gold. A part of US Dollar's gains on Tuesday could also be attributed to the intense selling pressure around the British Pound following weekend comments from UK PM Theresa May that hinted towards the timing of ending Britain's association with the European Union.

In absence of any major economic releases on Tuesday, investors' appetite for riskier asset would continue to drive the yellow metal while focusing on speeches from various Fed officials later during US trading session. 

Technical levels to watch

On a sustained trade below $1300 psychological mark, the metal is likely to accelerate the fall immediately towards $1290 horizontal support. On the upside, $1306 handle now become immediate resistance, which if cleared should help the commodity to stage additional recovery further towards an important support, now turned strong resistance, at 100-day SMA near $1310 region.