Gold remains on defensive despite IMF's downward revision of global growth

Gold is currently trading at $1,278; down 0.37 percent on the day.

The yellow metal charted a bearish-lower high at $1,283.50 yesterday, validating the range breakdown witnessed on Friday despite global growth concerns and the fading prospect of a breakthrough US-China trade deal.

The IMF lowered estimates for growth in 2019 by 0.2 percentage points to 3.5%, its second downward revision, this time on account of weakness in Germany and Turkey, according to CNN. The agency also cited trade war and Brexit as risks to the global economy.

Notably, the Sino-US trade war is far from over. Moreover, both sides have made little or no progress on key issues like Chinese theft of American intellectual property.

Hence, it is not surprising to see the futures on the S&P 500 trade in the red. As of writing, the futures are down 0.54 percent. Major Asian indices like Nikkei, S&P ASX 200, Hang Seng and Shanghai Composite are also reporting losses.

Even so, the safe haven yellow metal is under pressure. So, it could be argued that the technical factors are overshadowing the fundamentals. As a result, the metal risks falling to $1,266 (23.6% Fib R of Aug low/Jan high).

Gold Technical Levels