Gold turns lower for fourth consecutive session

Gold faded early European session bullish spike to $1270 level and turned lower for the fourth consecutive session.

Currently placed at session low, around $1265-64 region, the precious metal's latest leg of sharp slide in the past hour or so could be solely attributed to a follow through up-tick in the US treasury bond yields. With markets pricing-in an eventual Fed rate-hike action on June 14, up-move in the US treasury bond yields has been a key factor weighing on the non-yielding yellow metal.

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Meanwhile, a subdued US Dollar price-action did little to extend any immediate support to the dollar-denominated commodity and the prevalent risk-off environment, which tends to boost demand for traditional safe-haven assets, also failed to provide any respite to the bulls.

With an empty US economic docket, the US bond yield dynamics would continue to be an exclusive driver of the commodity's move on the first trading day of a new week. 

Technical levels to watch

Immediate support is pegged near $1261 level, closely followed by support at $1259 level, below which the slide could get extended towards $1255 support area. On the upside, $1270 now becomes immediate strong hurdle, which if cleared should easily lift the metal back towards $1280 barrier with some intermediate resistance near $1274 level.