Gold $XAU ’s sell-off is starting to look hard to stop…

Last night, gold repeatedly broke through support, hitting an intraday low near 3860 and setting a new low for this phase. It later rebounded, but is still struggling around 3900

The macro factors behind this sell-off are also becoming increasingly clear:

U.S. inflation came in above expectations, and Fed officials have continued to send hawkish signals recently. The market has even started pricing in another rate hike in December

A stronger dollar and higher Treasury yields have raised the cost of holding gold

More strangely, despite ongoing tensions in the Middle East, gold has received little support from safe-haven demand 🤨

Back to the charts, the 1H downtrend structure remains intact. The rebound just now reached around 3930 before getting pushed back down

For now, I’m still bearish:

The key level to watch next is whether gold can regain a firm footing above 3900. If the rebound continues to fail to break through overhead resistance, the low at 3860 will likely be tested again

I don’t think this correction is over yet