Gold slumps below $1350 as global risk-on dents safe-haven appeal

Extending its reversal from multi-month high level of $1375, Gold traded lower for second consecutive day and has now dropped below $1350 figure to currently trade around $1345 level. 

Optimistic sentiment surrounding Friday's surprisingly strong US NFP print dragged the yellow metal lower. Adding to this, a further improvement in global risk sentiment has also contributed towards denting the safe-haven appeal of the precious metal. 

From technical perspective, the commodity is reversing from 61.8% Fibonacci expansion level of its Brexit-led sharp up-surge and subsequent retracement. The commodity is currently trading near a short-term ascending trend-line support, which if broken might open room for further near-term corrective move.

Technical levels to watch

On a decisive break below the short-term ascending trend-line support near $1345-43 area, the metal seems to immediately drop to Friday's swing lows support near $1335 before heading towards 20-day SMA support near $1318-16 region. 

Meanwhile on the upside, the commodity now need to move back above $1350-52 immediate resistance in order to increase prospects of any further near-term up-move. Above $1350-52 resistance, gold seems more likely to head back towards $1365 recent closing highs resistance before making a fresh attempt to clear 61.8% Fibonacci expansion level resistance near $1375.