Gold is sharply lower by 4.7% against its mid-April high of $1,998. Benjamin Wong, Strategist at DBS Bank, sees XAUUSD’s ongoing decline as being corrective.

Gold has high probability to test  late March low at $1,890

“Quick sequential loss of the $1,944 and $1,925 support pegs returns the focus to gold’s late March lows at $1,890, and thereafter the next Fibonacci support cluster at $1,849.”

“Our base case is that for gold to abandon its rally inherent from March 2021’s $1,677 lows would be a slip under $1,780-$1,763. Otherwise, gold needs to rebuild its credentials with a move over $1,967-$1,980 resistance patch.”