XAUUSD , after a bearish distribution, is forming a correction with the aim of hunting for liquidity. The market remains under pressure from the bears and in a downtrend The dollar is consolidating but remains strong. A hawkish Fed and rising interest rates make gold unattractive. Gold remains vulnerable. Any recovery is likely to be sold unless Friday’s Nonfarm Payrolls (NFP) report significantly disappoints and reduces expectations of two rate hikes this year. The nearest reference points are JOLTS data and speeches by Fed officials. Drivers: Downside: rising yields, strong dollar, hawkish Fed, escalation in the Middle East, further liquidation of long positions. Upside: weak NFP data (Friday), falling yields and dollar, de-escalation, profit-taking on short positions. Resistance levels: 4195, 4230, 4275 Support levels: 4110, 4065, 4000 Technically, a bearish trend. Before the NFP release, the market may remain within the range: 4100–4230. After the distribution, during which gold hit a new low at 4110, a correction may form before the decline continues. Focus on the area of interest 4195–4230. A short squeeze may provoke a decline to 4110–4050.