Gold poised to move one way or the other this afternoon

Since an earlier update here this morning noted the rebound in the gold price to above $2,360, the metal has fallen back again. A short while ago it came close to its earlier session low at $2,344.82. The metal traded to almost exactly $2,345. Now later on the US CPI data is likely to cause a sharp reaction in Gold, especially if that data is outside of the consensus. Over the past few weeks, gold has a been on a tear, setting new records almost every day. The fact that it has done that at the same time as US yields have risen is a clear departure from the more usual dynamic and one that has been noted here many times already. The question this afternoon; is will that continue, if US treasury yields rise again and if not will gold still get a boost if US yields fall back? Well, right now it seems that it is set to benefit either way. However, some caution is also required because technically the metal is overbought right now (14 day RSI is currently at 82.70). That does not mean it is about to slide, but at the same time, there is potential for a corrective move of more than $30 to unfold. It does also rather depend on whether or not those Central Bank buyers have gotten enough of the Yellow metal now too. Gold is currently trading at $2,347.90