FX.co ★ Tips for trading gold

Yesterday's trading plan for gold pointed to a potential decline in prices due to the US CPI. Since inflation did exceed expectations, the yellow metal dropped significantly. As of today, prices have retraced below the short-term support, providing sellers with good trading opportunities to initiate short positions. The target will be the retest of the buyers' area below 1867.

Looking at the chart, a three-wave pattern (ABC) formed, where the wave "A" represents yesterday's downward momentum. This means that traders could open short positions, with stop-loss set at 1884 and take-profit placed at the breakdown of 1867, 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.