Gold extends drop for 2nd day on profit-taking

Gold extends losses for the second straight session and moves further away from two-year tops, mainly driven by a profit-taking slide after the Brexit aftermath.

Gold on its way to test 5-DMA

Currently, gold drops -0.57% to $ 1317, having posted day’s high at 1325.98 and day’s low at 1312.91. Gold prices dive deeper into the red this Tuesday, as sentiment improved somewhat and underpinned the recovery in the Asian equities, which dulled its safe-haven appeal.

Moreover, a fresh bout of profit-booking after the investors flocked to gold to hedge against Thursday's EU referendum, also dragged the bullion lower.

However, the downside remains capped on the back of broad based US dollar weakness, with the DXY now falling -0.34% to 96.22 levels. Meanwhile, focus now turns towards the US GDP and consumer sentiment data due later in the day ahead.

Gold Technical Levels                                   

The metal has an immediate resistance at 1325.96 (daily high) and 1333.63 (Jun 27 high). Meanwhile, the support stands at 1300 (round figure) below which doors could open for 1291.70 (10-DMA).