Gold struggles to scale $1,300 mark despite risk aversion

• Gold, a classic safe-haven asset, gets little help from the political turmoil in Italy.
• A break above $1,300 remains elusive.

Gold, a traditional safe-haven asset, has failed to scale the $1,300 mark despite the risk aversion in the global markets.

The political turmoil in Italy boosted the anti-risk Japanese Yen and safe haven bonds like Treasuries and German Bunds. However, investors have stayed away from the yellow metal.

The 10-year treasury yield fell by 31 basis points in the last five days. During the same time period, gold has failed three times to hold on to gains above $1,300. The price action risks bolstering the already bearish technical setup in gold.

That said, the metal may find bids if the US Q1 preliminary GDP reading, due today, misses estimates by a wide margin.

Gold Technical Levels

As of writing, the metal is trading at $1,298. The immediate support is seen at $1,292 (previous day's low), $1,287 (May 23 low), and $1,282 (May 21 low). Meanwhile, resistance is located at $1,302.74 (session high), $1,308 (200-day MA), and $1,321.76 (50-day MA).