Gold sharply lower in Asia, testing bids below $1,340.00

After facing strong upside pressure earlier on Monday, gold prices have dropped sharply during today's Asian session, a move that comes accompanied by decisive selling in USD/JPY, an unusual move given the strong negative correlation between USD/JPY and gold.

The yellow metal is currently printing new session lows sub $1,340.00 following what so far has been a $10 sell-off since the Asian session got underway. The mid and long term bias continues to look very constructive for the precious metal though, while from a fundamental standpoint, the Brexit outcome coupled with the ultra low yielding world we are in, makes gold a very attractive alternative investment.

Gold key levels

Mohammed Isah, Analyst at FXTechstrategy notes:"On the downside, support comes in at the 1,330.00 level where a break will turn attention to the 1,220.00 level. Further down, a cut through here will open the door for a move lower towards the 1,310.00 level. Below here if seen could trigger further downside pressure targeting the 1,300.00 level. Conversely, resistance resides at the 1,350.00 level where a break will aim at the 1,360.00 level. A turn above there will expose the 1,370.00 level. Further out, resistance stands at the 1,380.00 level. All in all, GOLD looks to strengthen further."