Gold price traded back towards $1,680 at the end of last week. XAUUSD is staging a deep correction on Monday, in line with the view of strategists at TD Securities.

Specs to again grow the shorts covered at the end of last week

“Following Friday's massive gold and commodity rally, driven by speculation China will moderate COVID-19 restrictions and a somewhat mixed payrolls, we look for specs to again grow the shorts they covered at the end of last week.”

“At $1,680, the yellow metal is at a technical point that may easily see a sharp reversal. Indeed, with inflation still a big problem and the US economy running hot, rates on the front end will continue to rise, and the dollar will be firm, which prompts us to think that a correction is in the cards starting in the not too distant future.”