Gold plunges to 13 months low – Well done ABCD pattern!

Recalling our earlier update ABCD pattern in Gold, the precious metal traded exactly in line with our forecast, helping our forex trading...

ABCD Pattern Completed

Recalling our earlier update ABCD pattern in Gold, the precious metal traded exactly in line with our forecast, helping our forex trading signal secure some nice profits. On Wednesday, gold prices shifted to their lowest since January 2017 amid the stronger dollar.

Well, the U.S. dollar also jumped to its highest level in 13 months and this is something we forecast in the previous economic events report.

Gold - 120 Min Chart

Gold – 120 Min Chart

For the moment, gold is trading near $1,173 after placing a low of $1,160. It recently has formed a sort of a hammer candle pattern on the 2-hour chart. The hammer pattern followed by a strong bearish trend often causes a bullish reversal. That being said, can we expect a bullish reversal?

I wish I could say yes, but gold is still bearish and the violation of $1,181 has opened further room for selling until $1,157 and $1,131. But since the metal is in oversold zone, we may see a bullish retracement in it until $1,181 and $1,187. Stay tuned for more updates!

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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