Gold drops below $1230

A stronger US dollar across the board pushed the price of the yellow metal to the downside. The value of the ounce is pulling back on Monday after a having a sharp rally on Friday, from 2-week lows. 

XAU/USD reached $1236 at the beginning of the week but then lost strength and started to decline. Recently it broke below the short-term support area around $1230 and fell to $1228 hitting a fresh daily low. 

Levels to watch 

Now the metal is looking at the next support at $1225. Below there attention would turn to Friday’s low at $1222 and then to the $1220 zone. A consolidation below $1220 could open the doors for a test of $1205 - $1200. 

To the upside, now $1230 is the immediate resistance. XAU/DUSD needs to rise above the 20-day moving average that stands at $1238 in order to remove the short-term bearish pressure. 

Since the beginning of March, gold lost more than $20, amid a recovery of the US dollar supported by expectations of several rate hikes from the Federal Reserve during 2017. For the current year, is still in positive territory, up 7%