Gold drops to multi-day lows, around $1325 level

Improving risk sentiment dents the commodity’s safe-haven status.
A goodish bounce in the US bond yields/USD adds to the selling bias.

Gold remained under some heavy selling pressure through the early European session and dropped to multi-day lows, around the $1325 region in the last hour.

The precious metal failed to capitalize on last week's strong up-move, further boosted by Friday's weaker US monthly jobs report, and opened with a bearish gap at the start of a new trading week.

Encouraging trade-related development, wherein the US President Donald Trump suspended plans to impose tariffs on Mexico, boosted the global risk sentiment and undermined the precious metal's safe-haven demand.

The risk-on mood was evident from a goodish rebound in the US Treasury bond yields, which helped ease the recent US Dollar bearish pressure and further drove flows away from the dollar-denominated commodity.

With today's steep decline, the metal has now erased gains recorded in the previous four trading session, though has still managed to hold its neck above the key $1300 psychological mark amid increasing Fed rate cut bets.

Hence, it would be prudent to wait for a strong follow-through selling before confirming that the non-yielding yellow metal might have actually topped out in the near-term or positioning for any further depreciating move.

Technical levels to watch

XAU/USD

Overview
Today last price	1327.03
Today Daily Change	-13.48
Today Daily Change %	-1.01
Today daily open	1340.51

Trends
Daily SMA20	1297.33
Daily SMA50	1289.67
Daily SMA100	1298.61
Daily SMA200	1265.43

Levels
Previous Daily High	1348.12
Previous Daily Low	1330.4
Previous Weekly High	1348.12
Previous Weekly Low	1306.18
Previous Monthly High	1306.9
Previous Monthly Low	1266.35
Daily Fibonacci 38.2%	1341.35
Daily Fibonacci 61.8%	1337.17
Daily Pivot Point S1	1331.24
Daily Pivot Point S2	1321.96
Daily Pivot Point S3	1313.52
Daily Pivot Point R1	1348.95
Daily Pivot Point R2	1357.39
Daily Pivot Point R3	1366.67

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