Gold extends its slide for 6th straight session, drops to $1220

Extending its slide for seventh consecutive trading session, Gold has now dropped to $1220, its lowest level since early April.

Tuesday's sharp fall in the precious metal was triggered by upbeat US new home sales data that further fueled expectations of a Fed rate-hike, as early as June. After Tuesday's drop, the precious metal has wiped-off all of its gains recorded in the month of April and is now headed to a very important daily closing lows support near $1217-15 area, which has been held since late Feb.

A this week's Fed speeches, including that from the Fed Chair Janet Yellen on Friday, are expected to reiterate higher odds for a June rate-hike and thus is unlikely to provide any respite to falling gold prices.

Moreover, risk-on sentiment as depicted by a strong rally across global equity markets is also contributing towards dulling demand for the precious metal.

From technical perspective, a decisive break below $1215 support, also coinciding with 100-day SMA seems to open room for further near-term depreciating move for the yellow metal

Technical levels to watch

Below $1215 immediate support, the metal seems to extend its fall immediately towards $1208-07 support area ahead of $1200 round figure mark support.

Meanwhile on the upside, any attempts of recovery from slightly near-term oversold conditions now seems to confront immediate resistance near $1225 level, which if conquered should assist the metal to stage some additional recovery towards $1240 level with intermediate resistance near $1231-32 zone.