FX.co ★ Tips for trading gold

Following the release of strong GDP data in the US and a decrease in the number of initial jobless claims, dollar demand surged, leading to a 1700-pip drop in the price of gold.

However, the disappointing report on home sales offset all the losses, opening a potential for further growth in the gold market.

Considering the three-wave pattern (ABC), where wave A represents Thursday's bullish momentum, investors could buy gold, with a 50% retracement based on the Fibonacci level. Limit the risks at 1892, and take profit upon the break of 1913, 1938, and 1985.

The trading idea came from the "Price Action" and "Stop Hunting" methods.

Good luck in trading and don't forget to control the risks! Have a nice day.