Gold as a potential inflation hedge has been losing it's ground of late especially considering the fact that central banks have been raising interest rates of late to help curb spiralling inflation.
These rate hikes is evidenced by the recent flow of capital into Fiat currencies which allows for savers to earn interest payments on their savings.
Gold has been losing ground to all the major currencies of late, and the only thing that has been keeping XAUUSD up was a weaker dollar that's been retracing to the downside.
I believe that now is the time to sell XAUUSD as the dollar currency index is showing a reversal pattern that should fuel dollar strength.
I believe gold will break the current weekly support at 1620 to eventually reach the next weekly support zone near 1560.
These rate hikes is evidenced by the recent flow of capital into Fiat currencies which allows for savers to earn interest payments on their savings.
Gold has been losing ground to all the major currencies of late, and the only thing that has been keeping XAUUSD up was a weaker dollar that's been retracing to the downside.
I believe that now is the time to sell XAUUSD as the dollar currency index is showing a reversal pattern that should fuel dollar strength.
I believe gold will break the current weekly support at 1620 to eventually reach the next weekly support zone near 1560.