Gold breaks to the downside, hits 2-day lows

Gold breaks to the downside, hits 2-day lows  

The yellow metal reversed sharply, falling $10 from day’s highs.  
Price remains in short-term range, still above key MA but the bearish momentum is intensifying.  

Gold reached earlier today at $1,318/oz the highest level since February 4. When the US dollar started to rise across the board, XAU/USD pulled back to the $1,310 area. Recently broke below the daily low at $1,308 and dropped to $1,305.  

As of writing, stands slightly above the low with a strong negative momentum and close to the weekly low located at $1,302 (also the 20-day moving average). The metal looks vulnerable after being rejected today from above $1,315 (upper limit of the short-term range) and it looks for a test of the bottom. Under $1,302 the next strong support might be seen at $1,295.  

The move to the downside took place on the back of a stronger US dollar across the board. The DXY rebounded back above 97.00 and currently trades at 97.13, about to post the highest close since December 14. The greenback was particularly strong versus the euro and the yen, supported by higher US yields.