Gold sinks deeper into the 1,330.00 key level as markets stabilize

• Gold continues to drop in cycles as market sentiment falters and recovers amidst geopolitical turmoil.
• The possible trade war lead-up is likely to cool off following this week's round of tariff threats.

Gold is continuing to slump in Asia trading, bumping into the 1,330.00 handle and maintaining the bearish momentum that rolled over from Wednesday's action.

Gold initially lifted on the week's outset, but repeated rounds of tariffs between the US and China has knocked market sentiment back. Recovering risk appetite has returned to the broad markets, and Gold is stumbling lower after reaching a weekly high at 1,348.22.

Gold levels to watch

As FXStreet's own Falvio Tosti noted earlier, "key support is seen at $1,321 last week’s low. Bears will need to break the $1,330 level with the 50 and 100-period simple moving average. Unless the bulls can retake the $1,400 level the short-term momentum is currently seen as bearish. Resistance is seen at the $1,340 psychological level and at $1,348.40 swing high, while support is seen at $1,328.60 swing low and confluence zone, followed by $1,321.06 swing low."