Gold's Rollercoaster: Target Ahead, But Expect Lows

Oct 3, 2023

I've entered a long position in XAU/USD (Gold) at $1,830, targeting an exit at $1,865 within a 3-6 week time frame. This trade is grounded in my unique strategy that takes into account both technical and fundamental factors. Technically, the Relative Strength Index (RSI) on the daily chart recently indicated extremely oversold conditions, triggering short-covering in Gold. Additionally, the $1,815 level has acted as solid support, reinforcing my bullish outlook. Beyond technical analysis, my choice of the $1,865 target reflects a retracement strategy within the context of my unique approach. While fundamental elements like the Federal Reserve's hawkish stance and robust US macro data have weighed on Gold, I anticipate a short-term shift in market sentiment. Notably, I'm proceeding without a stop-loss in this trade (little to no leverage used), which means it's vital to carefully assess your risk tolerance and actively monitor market developments throughout the 3-6 week holding period, adjusting the trade as necessary.

Note: There is a possibility that the market could establish fresh lows before reaching the desired target.

Oct 10, 2023

Trade closed: target reached

300+ pips