Gold extends slide, eyes last week lows

• Positive mood on markets weigh on gold. 
• Stronger US dollar also pushed the yellow metal lower. 

After a brief period of stabilization, gold prices resumed the decline. It printed a fresh low at $1,322.60/oz after the beginning of the US session. It was holding near the lows, under pressure. 

Gold is back near last week lows. Yesterday’s rally that followed the announcement of Chinese authorities to impose tariffs on 106 US products, gold rallied. But those gains were short-lived. The recovery in equity markets that start after US officials mentioned their desire for communication eased concerns about a full-blown trade war. The yellow metal reversed sharply. From yesterday’s highs it has fallen $25.

Today the positive tone in US stocks remains high. The DOW JONES was up 1.38% and the NASDAQ 0.85%. The sentiment affected gold that is also being hit by a stronger greenback. DXY Futures rose back above 90.00, to the highest in almost a month. 

Levels to watch

XAU/USD moved closer to last week lows, located slightly above $1,320. A break lower could clear the way for $1,314 and under that level the next key support might be seen at $1,307. If price manages to hold on top of $1,320 it could recover some ground. Immediate resistance might lie at $1,331 followed by $1,339 and $1,345 (Apr 2 high).