The strategy presented last August 2 was to build up long positions in order to push gold to 1833. But after moving by more than 2,000 pips, the yellow metal turned sharply on the statements of Fed Vice Chairman Richard Clarida, which hints at a potential rate hike by 2023. He said the central bank could raise interest rates by then, as the US economy will have reached the target levels on inflation and employment.
The drop opened two possible scenarios for gold, each of which is based on a false breakout and move towards 1833.
But before making any deal, it is better to wait for impulses and pullbacks so as to avoid losing profit. Either way, the risk-reward ratio can be more than 1:10.
Good luck!