Such a scenario is likely to happen. The reason is high inflation and recession. It is not possible to suppress inflation with interest rates in a short time, this is a process. In the near future, we may see sharp interest rate hikes on the ECB side as well. This process seems to take a long time because inflation figures are at the peak of the last 40 years. We shared more detailed macroeconomic comments in the previous posts, you can take a look.
*Note: The reason we're reviewing XAU/EUR is to get a better idea of the state of gold. Before buying an instrument, it will give you more insight to have a look at its charts with other crosses.
When we examine the price chart on a monthly basis, The price is very close to the upper channel line, which is a major resistance for the price. When we interpret the price according to the elliot wave pattern. It corrects the previous rise. I think we are now in B bullish on this corrective move. After low as low as $1650 last June, it closed the month with a strong doji candle formation. *In candlestick formations, if the price holds above 1/3 of the needle, an increase is expected. For this reason, pullbacks to $1650 levels can be considered as buying opportunities.