Previous trading tips in gold pointed to a price decrease towards $1675 and below. It was based on the continuation of the downward trend, as well as on the levels left unbroken by buyers at different times.
Currently, there are two such levels. The first is the monthly high at $1687, while the second is the yearly high at $1675.
Today's data from the US will be decisive for the market. The official report on inflation will certainly affect the plans of the Fed on interest rates.
Indicators show that there is likely a sell-off during the US trading session.
There are two possible scenarios:
1. Traders will take short positions, with stop loss at $1734. Then, they will exit the market when the quote reaches $1675.
2. After the release of the US inflation report, traders will sell gold until the price reaches $1675.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day! Don't forget to control the risks!