Gold fades Italian referendum-led early bullish spike

Gold faded Italian referendum-led bullish spike to $1188 level and has now dropped to fresh session low amid improving market risk sentiment. 

Currently trading around $1170 region, the precious metal ran through fresh offers as Italian Prime Minister Matteo Renzi's defeat (in a referendum on constitutional reform) induced safe-haven buying seems to be receding. Market participants now seem to speculate that ECB might now focus on purchasing Italian government bonds, in order to curb volatility following the outcome of the referendum. Market expectation is eventually easing concerns of an immediate turmoil in financial markets and driving investors away from traditional safe-haven assets, including gold. 

Moreover, growing expectations of further Fed rate-hike actions, beyond December meeting, is also contributing towards the offered tone surrounding the non-yielding yellow metal.

Traders on Monday would focus on the release of US ISM non-manufacturing PMI print for November in order to grab some short-term momentum play, while keeping a watch on the overall market risk sentiment, which would drive the metal's safe-haven demand.

Technical levels to watch

A follow through selling pressure below $$1167 level (Friday's low) is likely to accelerate the slide towards last week's multi-month lows support near $1160 region. On the upside, $1181-82 area now seems to act as immediate resistance above which the metal seems to make a fresh attempt towards $1190 region en-route $1200 psychological mark.