Trading tips for gold

Gold rallied last week, thanks to the mixed reaction of traders towards US jobless claims. The stronger-than-expected data prompted traders to take long positions, offsetting the previous losses in the market. The better-than-expected employment report that followed led to a surge in long positions as well, that is why gold was up during Friday's US session, despite the 2,200-pip dip earlier.

Obviously, this means that large players are betting on an increase in gold amid strong data from the US. If that really happens, a triangle will be formed in the chart.

In that situation, long positions are the most ideal, while short positions should be avoided. This follows the strategy of "Price Action" and "Stop Hunting".

Good luck and have a nice day!