There have been pretty interesting developments in gold.
1. Gold traded higher amid weak inflation;
2. The yellow metal nearly absorbed all news achievements, creating a so-called "news bubble".
In this bubble, buyers are trapped in the bottom of the momentum, which is also the support level since September 8 - $ 1,780.
And zooming out, there is a clear three-wave pattern in the chart.
This suggests that it would be best to abandon long positions, at least until there is a false breakdown at $1,780. Instead, investors should take short positions with target at $1,675.
This analysis is based on Price Action and Stop Hunting strategies.
Good luck and have a nice day!
