Gold downward channel in play

FX:XAUUSD   Gold Spot / U.S. Dollar
Amid falling commodity prices, weakening AUD and predominantly USD strength (we have seen good data, NFP and unemployment among others), gold             prices remain on a downtrend since the rise above 1300 earlier in the year. Gold             prices should be open to further downside pressures along the downward channel on the weekly chart. However, it is important to note that we are nearing the channel support and upside to about 1200-1240 might play out before we see prices below 1100.

Looking for potential short entries near top of the channel if this plays out.

Trade light and trade safe.
With the FOMC progressively changing their language in terms of forward guidance and the expectation of a rate hike coming further this year, the cost of carrying gold seems to look more unfavorable. With oil prices low and inflationary pressure somewhat muted, gold is also losing attractiveness in being a hedge against inflation.

Feel free to comment on the trading idea :)
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