- As the US dollar resumes the upside, pressure mounts on gold.
- XAU/USD drops to $1,916/oz, still remains above critical support area.
Gold prices peaked immediately after the release of the US employment report at $1,948/oz but then reversed quickly as the US dollar resumed the upside across the board. XAU/USD bottomed at $1,916 the lowest level in a week.
As of writing, gold trades at $1,925 moving off lows but still showing a bearish bias. While above $1,910/15 losses seem limited while a break below would expose the $1,900 area, potentially triggering more volatility. The next target is seen at the August low at $1,960.
The bias continues to point to the downside. A recovery above $1,960 would alleviate the pressure while a daily close above $1,975 could suggest more gains ahead and a test of $2,000.
The greenback is up on Friday against G10 currencies and equity prices in Wall Street are falling again sharply for the second day in a row. The DXY rose to 93.20, hitting a fresh weekly high.
Gold technical levels
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