XAUUSD trying to break key support - threatening further decline

The U.S. Dollar Index (DXY) is a weighted currency index that is commonly used as a benchmark for the performance of the U.S. dollar. The U.S. Dollar Index continued to rise following last week's surprise upward release of U.S. inflation data for April (which was lower than March's data). The higher inflation data supported the value of the dollar at a time when the Federal Reserve has every incentive to raise the federal funds rate. The market now expects the Fed to raise rates by a further 190 basis points before the end of the year.

Daily gold charts help to see the current trend in the context of long-term levels/areas

I think $1770-1780 level will be the price floor for XAUUSD in the short term as the previous downward breakout proved to be very short-lived and now the price is rallying again near $1817-1820 price level.

Comment:

The red zone is a short-term resistance level.