The precious metal extended overnight retracement slide from two-week lows and was weighed down by a combination of negative factors - a goodish pickup in the USD demand and fading safe-haven demand.

With short-term technical indicators already seemed losing positive momentum, the fact that it has slipped back below 100-hour SMA, for the first time since last Tuesday, points to a bearish set-up.

A follow-through weakness below 38.2% Fibonacci retracement level of the $1238-$1266 recent recovery move would add credence to the near-term negative outlook.