Gold retreats from 6-year highs, drops to $1425

• Profit-taking in gold and a correction of the US Dollar sent prices sharply lower. 
• XAU/USD correct to the downside from the highest in six years. 

A correction of the US Dollar on Friday favor the decline in gold prices. The yellow metal earlier today jumped during the Asian session to $1,453 the highest level since 2013. Afterward pulled back modestly, and during the American session, the correction gained speed. 

Recently XAU/USD bottomed at $1426, a fresh daily low after erasing all the spike that took place following Fed officials comments yesterday that triggered a sell-off of the US Dollar. From today’s top dropped $25. 

As of writing, it is hovering around $1,428 down for the day and despite the reversal, up for the week. Price heads for the highest weekly close since May 2013. The trend still points to the upside, but the ongoing correction could signal a pause ahead. 

Levels to watch 

On the downside, support levels might be seen at $1,425 followed by $1415 and $1,410. On the upside, resistance could be located at $1,433 then $1,441 and $1,450.