Gold is in an uptrend, boosted by a dovish Fed and a high demand for a safe-haven asset. It reached a record high of 2070 USD, but then corrected lower, falling below the resistance level of 2070 USD. This pullback was due to profit-taking.
However, the uptrend is still intact, as shown by the series of higher lows and highs on the 1H chart.
## Trading strategy
I suggest a buy-on-breakout strategy, which means entering a long position if the gold price breaks above the 2070 USD level, which is the top of the current range and a key resistance. This scenario would indicate that the demand for gold is strong enough to resume the uptrend and aim for new highs.
Here are the parameters of the strategy:
- Entry: buy if the gold price closes above 2070 USD on the 1H chart.
- Stop-loss: place a stop-loss order at 2067 USD.
- Target: aim for a profit target at 2080 USD.
- Risk/reward ratio: the risk/reward ratio of this strategy is 3,33.
However, the uptrend is still intact, as shown by the series of higher lows and highs on the 1H chart.
## Trading strategy
I suggest a buy-on-breakout strategy, which means entering a long position if the gold price breaks above the 2070 USD level, which is the top of the current range and a key resistance. This scenario would indicate that the demand for gold is strong enough to resume the uptrend and aim for new highs.
Here are the parameters of the strategy:
- Entry: buy if the gold price closes above 2070 USD on the 1H chart.
- Stop-loss: place a stop-loss order at 2067 USD.
- Target: aim for a profit target at 2080 USD.
- Risk/reward ratio: the risk/reward ratio of this strategy is 3,33.