The technical correction of gold is due to the advance in the yields of the treasury bonds. The 10-year bond yields 3.23%, which is the peak of 2018.

The inverse correlation between US Treasury yields and gold fuels the price volatility. In the next few hours, gold is expected to continue falling and could reach the support zone of 1,828, which coincides with the bottom of the trend channel.

Expectations for an interest rate hike of at least 0.75% once in its next three meetings to curb inflation is the key factor for investors to take refuge in the US dollar and stop investing in gold.

Early in the American session, gold was trading at 1,855 above the 21 SMA and below the 200 EMA. The breakout of this range could define the next move for gold in the coming hours.

A break below the 21 SMA located at 1,853 could accelerate the bearish move towards the support zone at 1,828 and could even allow the asset to reach the low of June 10 at 1,825.

According to the 4-hour chart, we can see that Gold has an uptrend channel formed on May 12. If gold manages to bounce above this uptrend channel, the uptrend could prevail and gold could rally in the coming days.

On the contrary, a sharp break and close on daily charts below 1,820 may cause a drop towards 2/8 Murray at 1,812 or the pairce may even reach the low of May 16 at 1,786.

On the other hand, on the upside, we should expect consolidation above 1,862 for the resumption of the uptrend. In this case, the price could reach the high of 1,878 and the top of the uptrend channel around the psychological level of 1,900.

The eagle indicator is in the overbought zone and the technical correction is likely to continue in the coming hours.