Bullish Cypher Driving Gold Bullish
In our earlier update on Gold, we discussed the bullish trade setup that leads the Gold to hit our target at $1,268. Though it was supposed to get higher, but trading in the last fifteen days of December is always like this. Anyways, if you are looking to trade Gold, you need to be cautious of two things today…
Fundamentals Outlook
US final GDP q/q – At 13:30 (GMT), the Bureau of Economic Analysis will release the final gross domestic product of the US. It’s forecasted to be 3.3% vs. 3.3% in the month of September. This is one of the main economic measures that central bankers use to determine future interest rates.
In case of slower growth, the investors will expect a dovish monetary policy from the Federal Reserve. If the final GDP comes out at 0.4%, then we are going to see a bearish trend in the Gold. In contrast, if the GDP grows by 0.2%, then Gold is likely to target $1,269 today.
Technical View – Cypher Pattern
On the daily chart, the precious metal Gold formed a Cypher pattern with its fourth leg (C to D) at $1,240. This signifies a potential bullish reversal in the Gold. Traders, the Gold has already completed 50% Fibo retracements at $1,268/69.
Gold – Daily Chart
That being said, we should closely watch the $1,269. The break above this level can push the Gold to $1,274 and even $1,278.
Gold // XAUUSD – Trading Idea
Gold is really mixed today. But for the sake of an idea, we should watch $1,264. Above this, Gold can stay bullish to target $1,269. Good luck!
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