Gold dropped sharply during yesterday's session and lost more than $10 from its daily highs. The yellow metal broke out of a 6-day trading range amid a stronger US dollar supported by comments from the Fed’s vice-chair Clarida who stated that interest rate hikes are still necessary. US President Trump statements about auto tariffs also supported the greenback as the US Dollar index rose the highest level in a week at 97.50.
Gold prices fell sharply breaking both the $1220.12 and $1214.40 support levels after failing to break the $1228.26 level to the upside on numerous occasions. The price is currently hovering just below the 1214.40 level on the edge of oversold conditions. That is why we will be watching the 1209.70 support level during today's session.
Support: 1209.70 / 1204.07
Resistance: 1214.40 / 1220.12