FX.co ★ Trading idea for gold

The following factors pushed gold up in the past days:

1. Weak US GDP and jobless claims;

2. Fed Chairman Jerome Powell's speech at Jackson Hole;

3. Disappointing data on consumer confidence.

This allowed bullish traders to build up long positions and set a target at 1833, which is also where medium-term sellers placed their stop orders.

So, for traders who have not yet opened any position in the market, taking short positions is not recommended at least until a false breakout around 1833.

But for those who already have long positions, it is best to trade along the trend and take profit as soon as the quote breaks through 1833.

This strategy is based on Price Action and Stop Hunting methods.

Good luck and have a nice day!