Gold prints fresh 1-year lows below $1230

• The yellow metal is having the worst day in weeks, falling more than $10.
• Price heads for the lowest close since July 2017.

Gold prices tumbled during the American session, hitting the lowest level in a year. The metal dropped below $1240/oz and accelerated the decline. It bottomed at $1,226.05, a level last seen back in July 13, 2017.

From the lows, gold failed to recover and at the time of writing was trading at $1,227 marginally above the lows, still under significant pressure while the US dollar was at daily highs. The rally of the greenback was among the drivers of gold’s slide.

The US Dollar Index bounced shapely to the upside from multi-day lows. The index broke above 94.60 and is now positive of the week. The US dollar strengthened during Fed’s Chair Powell testimony at Congress.

XAU/USD Technical levels

With gold down $15 in a few hours, short-term technical indicators are showing oversold readings that could suggest some exhaustion to the downside.

If the decline continues, support levels might be seen at $1,224 followed by $1,220 and $1213 (May 2017 low). On the upside, $1230 is now the immediate resistance followed by $1,237 and $1,245.