Hi, dear traders!Let me expand on my trading idea for gold. Yesterday, I shared my trading recommendation on gold. I suggested that we open long positions from the 50% Fibonacci retracement.
Yesterday, the US Federal Reserve began the reduction of its huge balance sheet. In other words,the regulator started selling Treasuries and mortgage securities purchased earlier. The term for this move is QT or quantitative tightening.
Gold and other precious metals gave a robust response to the launch of the QT program by anotable rally. Interesting, precious metals clicked into gear on the back of the broad-based advance of the US dollar.
From the point of my Price Action method, gold closed yesterday with a quality bullish pin bar inthe daily chart. It is a good signal for opening new long positions or keeping long positions opened earlier.
The immediate targets for fixing profits on long positions will be $1,870 and $1,885. The main goal of profit taking is the highs of 2020 and 2022.
The trading idea is developed on the grounds of the author's methods: Price Action and Hunting for Stop Orders.