ABCD Pattern In Gold – Is it Going After $1,245?

The bullion market is dominated by bulls as Gold price rose above $1,235, a strong resistance level. The demand for safe-haven assets triggered as the dollar weakened and global stock markets tumbled, with rising political and economic uncertainties adding to bullion’s appeal.

Key Technical Drivers

Technically, GOLD has formed an ABCD pattern on the 4- hour timeframe, which is signaling multiple reasons to stay bullish on gold. Recalling our previous update on gold, Gold Testing 50% Fibonacci Retracement – Safe Haven Appeal Kicks In, Gold completed 61.8% retracement at $1,227 and the same level is working as a solid support to push its prices higher.

In the ABCD pattern, $1,227 is working as a C point. Bulls enter the market to aim D which prevails somewhere near $1,246 this week.

Gold Trading Plan
It will be nice to stay bullish above $1,236 with a stop loss below $1,232 and take profit of $1,239. I will be looking to take another buy position above $1,239 to target $1,246 today. Stay tuned for updates!