Gold extends slide to $1,334 as USD remains strong
|- Gold accelerated to the downside, down $20 from last week highs.
- Stronger US Dollar continues to be the main driver.
Gold dropped further and bottomed at $1,334.95/oz, the lowest level since last Friday. It was hovering near the lows still under pressure. From Wednesday’s high it fell $20 on the back of a rally of the greenback.
The US Dollar rose further across the board during the US session. US Dollar Index Futures rose above the 90.00 area boosted by higher US bond yields. The 10-year yield was at 2.93% at the highest since March.
Levels to watch
The slide pushed the price near last Friday lows located at $1,332; below, attention would turn to an uptrend line from December that stands at $1,330. A break lower could clear the way to more losses with a potential target at $1,320.
To the upside, immediate resistance is now seen at $1,341. The key level to the upside continues to be $1,350. During the week gold traded on top but failed to hold and retreat. The yellow metal needs to break and consolidate significantly above $1,350 in order to clear the way to more gains. The mentioned area has been capping the upside since December.
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