Gold is setting for the correction
Gold is displaying weakness after a failure of buyers to break 2172. After the publication of a strong PPI report for the United States, it's becoming clear that inflation persists and the interest rate might stay at a current level for more time than expected.
Yields of 30-year treasury bonds have grown, pushing them above 4.4%, which pressures all assets against the US dollar.
Now Gold traders have accumulated a substantial long position according to the Commitment Of Traders report, and currently, might look overbought in the face of changing probabilities of upcoming decisions of the Federal Reserve.
It's possible to consider a short position if XAUUSD retests its trendline of a current consolidation, as displayed on the chart. The possibility of a sharp liquidation can give a decent asymmetrical trading opportunity.
Yields of 30-year treasury bonds have grown, pushing them above 4.4%, which pressures all assets against the US dollar.
Now Gold traders have accumulated a substantial long position according to the Commitment Of Traders report, and currently, might look overbought in the face of changing probabilities of upcoming decisions of the Federal Reserve.
It's possible to consider a short position if XAUUSD retests its trendline of a current consolidation, as displayed on the chart. The possibility of a sharp liquidation can give a decent asymmetrical trading opportunity.