Gold prices are under a strong selling pressure weighted down by surging momentum in the U.S. dollar as monetary policy between the U.S. and Europe continue to diverge.
Despite hawkish sentiment from FED, Gold price was able to hold above the psychological support level of 1300 USD. But Friday was the breaking point. After the big breakdown in the EURUSD exchange rate yesterday, the positively-correlating gold was always going to struggle to sustain its gain.
XAUUSD ended the week 1278.45 below EMA 50, EMA 100 and EMA 200 in daily charts.
As seen in the above Daily Chart, the price is testing the trend line support. We see a double bottom pattern as well. A real critical support. This level is the EMA 200 support of the weekly chart as well.