Gold tumbles to fresh 6-month lows, below $1275 level

   •  Fails to build on early gains led by reviving safe-haven demand.
   •  Resurgent USD demand prompts some aggressive selling.
   •  Technical weakness aggravates the fall in the last hour. 

After an initial uptick to $1284 area, Gold came under some renewed selling pressure and tumbled to fresh six-month low in the last hour.

In the latest development in escalating trade tensions between the world's two largest economies, the US President Donald Trump planned to impose additional tariffs of 10% to around $200 billion worth of Chinese products. 

The news triggered a global wave of risk-aversion trade, as depicted by a sea of red across equity markets and further reinforced by the ongoing slump in the US Treasury bond yields and provided a minor boost to the precious metal's safe-haven appeal.

The uptick, however, was quickly sold into amid resurgent USD demand. In fact, the key US Dollar Index jumped back closer to the key 95.00 psychological mark and prompted some aggressive selling around dollar-denominated commodities - like gold.

The latest leg of sharp downfall over the past hour or so could also be attributed to technical selling below a short-term ascending trend-channel support, forming a part of bearish flag chart pattern on the 1-hourly chart. Hence, a follow-through weakness, possibly towards a medium-term ascending trend-line support, now looks a distinct possibility.

Technical levels to watch

Immediate support is pegged near the $1270-68 region, which if broken would mark a fresh bearish breakdown and pave the way for an extension of the commodity's ongoing bearish trajectory.

On the flip side, $1278-80 region now becomes an immediate hurdle, which if cleared might trigger a short-covering bounce towards $1285-87 intermediate resistance en-route $1290-91 supply zone.