Despite the corrective move lower in the US dollar, gold has struggled to find support and instead traded within a very narrow range. The issue that gold is facing is the continued aggressive tightening stance that central banks have taken, in which other banks including the ECB and BoE are looking to join with a 50bps hike on the table. As such, downside risks will continue for Gold with a focus on $1685-90. Sticky inflation keeps central banks hawkish and robust jobs data keeps the imminent recession risks at bay for now.
