FX.co ★ Trading idea for gold

Gold rallied earlier, after the US reported another spike in inflation and Fed Chairman Jerome Powell said that previous hints of rate hikes are "just words so far".

But now, the yellow metal is declining, and has formed an "inside bar" pattern in the chart.

The bar is within the hourly chart and coincides with the correction that occurred last Wednesday.

Considering this, investors could provoke a price decrease by entering a short position with a target at 1818.

Obviously, long positions are not ideal because it will only trap you in the market, which will lead to losses.

This trading idea is under the framework of Price Action and Stop Hunting strategies.

Good luck!