Good morning, fellows. The gold price is basically at a five week low ($1,318.65) at the moment. Although investors are ready to trade the ECB rate decision, we can also expect volatility in gold. Let’s prepare for the action…

Gold – XAU/USD – Bullish Butterfly Pattern

Gold has encountered bullish pressure after being rejected just below the $1,320 mark.

What makes this level very interesting is that it’s a newly formed double bottom level and the market has closed some candles right above $1,320. Moreover, the bullish butterfly pattern has completed its C to D wave near $1,320 that has been serving as support now.

At the moment, gold is trading at $1,324, just below a major resistance level of $1,326. On a breach of $1,326, gold can target $1,331 and $1,334 today. While on the lower side, gold can gain support at $1,320, $1,317, and $1,312.

Gold – XAU/USD – Trading Plan

Bullish butterfly patterns are typically known for driving buying trends in the market. So, keeping this in mind, the idea is to stay bullish above $1,320 with a target of $1,326 and $1,331. Good luck!