The XAU/USD pair came under a renewed selling pressure during yesterday's session and broke below the critical $1300 mark to touch its lowest level since March 8 at $1286.65 per ounce. The decisive recovery seen in the US Treasury bond yields on Thursday points out to improved market sentiment, which weighs on the traditional safe-havens such as the precious metal. Adding to this, the US Bureau of Economic Analysis reported that the real GDP in the fourth quarter expanded by 1.9% on a quarterly basis, beating the market expectation of 1.8% and pushing the Dollar index to its highest level since two weeks.
Gold prices witnessed a huge plunge of more than $20 during yesterday and today's early session, breaking below the $1300 handle and printing a low of $1286.65 per ounce. The price is currently trying to hold above the 1288.63 support level as it entered the oversold zone. We can expect at this point a small recovery towards the 1293.78 resistance level before we can witness again another downward move.
Support: 1307.09/ 1303.07
Resistance: 1310.38 / 1314.16