Gold trips into a new six-month low, grinding towards $1,250

Gold is sinking into fresh lows in the Asia session, hitting a six-month bottom at 1,264.00.

Market expectations that the US will reverse its current trade policy against China and avert a trade war are hampering broader demand for the precious metal. President Trump's penchant for changing his mind and holding a frivolous line on what he intends to do is drawing down bids on Gold, as traders ultimately expect the current trade tensions between the US and China to amount to nothing.

Further hampering Gold prices was the US Fed's Jerome Powell, who reiterated the Fed's bullish stance on inflation looking forward on Wednesday, driving Gold lower once again. The broader market's sentiment recovery through the Asian session is continuing to send the safe-haven precious metal down into fresh lows as Gold tests into December of 2017's action.

Gold levels to watch

As noted by the FXStreet team earlier, "Spot is currently trading at levels last seen December 22nd, and is poised to extend its decline given that in the daily chart, the 20 DMA gains further downward traction far above the current level  and below the 100 and 200 DMA, while technical indicators accelerated their declines, with the Momentum within negative levels, and the RSI entering oversold territory. The 1,261.00 price zone is now the immediate support as the metal has several intraday highs and lows around it from late November, early December, with a break below it favoring a test of a strong static support area t 1,245.20.