A stronger US Dollar across the board and a reduced risk aversion pushed Gold prices further to the downside during Monday's session. The US Dollar index rallied above the 97 level, its highest level since 17 months ago. Federal Reserve monetary policy expectations continue to be a key driver for the greenback and for the yellow metal's pressure. Gold prices are testing a key support level at $1200 per ounce.
As expected, Gold prices broke to the downside for the seventh day in a row to retest the $1200 psychological level. The yellow metal found immediate support from this zone and bounced back to the $1205 level, however, the price came down again and is now hovering around the $1202 level. A divergence between the price and the momentum could trigger a moderate correction, that is why we will be focusing on the $1209 resistance level.
Support: 1200.2 / 1198.13
Resistance: 1204.07 / 1209.7