[GOLD 01.05.2025] Capitalize on Gold’s Price Swings Amid Central Bank Demand

Market Recap

Gold prices have experienced volatility in recent sessions, dipping below $3,250 as a firmer US dollar triggered profit-taking. Despite this short-term correction, analysts remain bullish for 2025, citing central bank demand and macroeconomic uncertainties. For traders, platforms like Exness offer tools to capitalize on gold’s price swings.

Current Price Action and Trends

Price Level:

As of May 1, gold trades near $3,245, down from recent highs but holding above key support levels.

Trend:

A bullish long-term trend persists, though short-term technical indicators suggest potential overheating and a corrective pullback.

Key Levels:

• Immediate Support: $3,200–$3,210 (psychological and technical floor)
• Recent Resistance: $3,250–$3,300 (key barrier to reclaim bullish momentum)
• Long-Term Target: $4,000+ by mid-2026 (driven by geopolitical risks and inflation concerns)

Trading Strategy for XAU/USD

Entry Points

1. Pullback Entry: Buy during retests of $3,210–$3,220, using a bullish divergence on RSI as confirmation.
2. Breakout Entry: Long above $3,250 with aggressive volume, targeting $3,300–$3,350.

Risk Management

• Stop Loss (SL): 1.5–2.0% risk per trade; place below $3,190–$3,200 to avoid trend reversal.
• Take Profit (TP): Partial profit at $3,280–$3,300, full profit at $3,350–$3,400.

Key Indicators to Monitor

• RSI: A retreat below 40 may signal deeper correction; a pop above 70 could trigger overbought conditions.
• Moving Averages: MA50 ($3,280) and MA200 ($3,200) act as dynamic support/resistance.

Rationale for Strategy

Bullish Drivers: Central bank purchases, geopolitical tensions, and persistent inflation concerns. Volatility: Watch US dollar index movements and Fed policy signals – a weaker USD could turbocharge gold’s rebound.

Final Advice

Adhere strictly to defined risk parameters. A break below $3,200 invalidates the bullish thesis, while a sustained close above $3,250 reestablishes momentum. Trade light during high-impact economic news releases and consider scaling positions to optimize returns.