Gold Ticks Up Before ECB – Bullish Butterfly In Play

The gold prices are little changed after sinking to their lowest ($1,318.65) in five weeks. Although investors are eyeing to trade the...

Gold - 240 Min Chart

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!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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