Gold slides further to fresh 3-month lows

The recovery in gold prices was short-lived and resumed the decline. After hitting $1277 following the release of the ADP employment report it turned again to the downside and recently broke below yesterday’s lows. 

It bottomed at $1262, a new low since the day after the Brexit referendum vote. The bearish pressure persists despite the fact that many technical indicators show oversold readings. 

On Tuesday, the ounce lost around $40 while stocks on Wall Street finished lower. Today equity prices in the US are rising (Dow Jones up 0.70%) while gold continues to decline. 

XAU/USD Technical Levels                                   

Support levels might be located at $1262 (daily low), $1257 (May 10 low / 200-DMA) and $1250 (psychological). On the opposite direction, resistance now stands at $1266 (Oct 4 low), $1277 (daily high) and $1288 (Jun 20 high).