Gold retraced from a six-year peak in the last two sessions. Tempered fed fund rate cut expectations and widespread trade optimism cooled down buying of gold supporting the dollar. Gold retraced to 38.2% of an increase started in mid-June. The correction could be extended to 50% around 1390 if the talks in Japan prove to be successful. On a daily chart RSI still runs in an overbought area suggesting it could fell more. It is, however, expected to stay around the 1400 level in the medium run.