FX.co ★ Tips for trading gold

Gold saw significant gains ahead of today's release of US inflation and jobless claims data. It made a false break above the September high, which could be used to open short positions.

Looking at the chart, a three-wave pattern (ABC) formed, where the wave "A" represents the downward momentum from September. This means that traders could open short positions after the false break above 1880. Set rake-profit upon the breakdown of 1803 and 1613.

The trading idea follows the framework of the "Price Action" and "Stop Hunt" methods. Good luck in trading and don't forget to control the risks! Have a nice day.