FX.co ★ Trading recommendations for gold

The current fall in gold is directly related to rising inflation in the US and the strengthening of dollar in anticipation of a new wave of rate hike by the Fed.

Since the release of the US inflation data, gold quotes have practically dropped 4,000 pips without a rebound, and today updated the September low. Most likely, the next large movement will take place next week, after the meeting of the Federal Reserve. But before that, there may be a correction towards 1675.

So, considering that there is a three-wave pattern (ABC), where wave A represents the bearish pressure in the past three days, investors should enter the market by selling up to the 50% retracement level. Stop loss may be placed at 1731, and exit the market on the breakdown of 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.