Yesterday during the US session, we managed to recover from our earlier loss in Gold. Gold continues to trade exactly as forecasted in Risk Appetite Dampens – Is It Good Time to Buy Gold? Are you ready to catch the next move?  

Gold – XAU/USD – Bullish Engulfing

In our earlier update on Gold, we spotted a 61.8% Fibonacci entry level. Gold soared exactly above this level and helped us close quick profits. For the moment, Gold is trading at $1,344 and is likely to go after $1,346.

The volatility is bit light during the London session, but will surely pick up during the initial hours of the New York Session. It is because most of the market is waiting for the inflation data and FOMC minutes from the United States.

Gold – Hourly Chart – Double Top

Gold can face an immediate resistance at $1,346 and a break above this level can lead it towards $1,356. Whereas, below $1,346, Gold is likely to gain support at $1,338.

Gold – XAU/USD – Trading Idea

During the European open, we shared a forex trading signal to stay bullish above $1,342 with a stop below $1,338 and a take profit of $1,346. It’s in profit now and investors are advised to drag their stops to break-even. Good luck!