Gold hits fresh 5-months lows, remains under $1220

A stronger US dollar pushed gold prices further to the downside during the American session. After a short-lived recovery, XAU/USD found resistance below $1230 and turned again to the downside. 

After the beginning of the US session, the value of the ounce fell to $1211, hitting the lowest level since May. Price remains near the lows as the US dollar continues to hit fresh highs across the board. The Dollar Index rose above 100.00 for the first time in a year. 

Equity prices in Wall Street are pulling back and US bond yields are moving away from daily highs, still higher from Friday’s levels. 

Gold technical levels

To the downside, support might lie at $1211 (daily low), $1200 (psychological)  and $1191 (Oct 15, 2015 low). On the other side, resistance now could be seen at $1220 (20-hour moving average), $1231 (daily high) and $1251 (Nov 10 low).