Gold retreats further after testing 2019 highs, hits level under $1330

• XAU/USD declines more than $15 from day’s top on a sharp reversal. 
• US: ISM Non-manufacturing Index partially offset a weak ADP employment report. 

The US Dollar gained momentum during the American session and triggered a sharp reversal in the value of gold. Earlier today, XAU/USD jumped to $1345/oz, matching the 2019 high, following the ADP employment report but then pulled back sharply. 

From the top, started to correct lower and then accelerated as the DXY erased losses. Recently bottomed at $1328 and it was hovering around $1330, still in positive territory for the day (fifth daily gain in-a-row) but considerable away from the top. 

The greenback recovered strength after the released of the ISM Non-Manufacturing Index for May that came in at 56.9, surpassing expectations of 55.4. Previously the ADP report showed the lowest job creation numbers since 2010. 

XAU/USD Levels to watch 

To the downside, the immediate support might be seen around $1328 and below at $1319 (June 4 low) and $1313. On the upside, resistance might be seen at $1333 followed by the critical $1345 and $1360. 

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