Gold speculators continued to cover some shorts. But in the view of strategists at TD Securities, the yellow metal needs to break past $1,750 to extend the short squeeze.

Gold has yet to price in an extended period of restrictive rates

“As quantitative tightening continues to sap liquidity from global markets, it will increasingly constrain other central banks before it binds the Fed while pressuring global assets amid tightening monetary policies and a slowing growth outlook. This should support the dollar's rally, while weighing on gold prices, despite rising recession risks, as inflation's rising persistence suggests the Fed is unlikely to stop hiking preemptively.” 

“In the near-term, however, the recovery in risk assets bolstered by signs of stabilizing Gilts is raising pressure on precious metal shorts, but gold prices need to break above $1,750 to extend the short squeeze.”