Contents
Market Recap
Gold prices have shown resilience in early 2025, maintaining a bullish trajectory despite recent corrections. As of March 3, 2025, the spot price hovers near $2,875/oz, reflecting a slight pullback from its February 24 peak of $2,956/oz. Analysts attribute this strength to central bank demand, geopolitical tensions, and expectations of Federal Reserve rate cuts. For traders seeking to capitalize on these trends, Exness offers a robust platform for executing XAU/USD trades.Current Price Action and Trends
Price Level:
XAU/USD is currently trading near $2,875/oz, consolidating after a sharp rally in late 2024.Trend:
The broader trend remains bullish, with prices moving within an upward channel. Short-term corrections are expected, but the long-term outlook favors continued growth.Key Levels:
- Support: $2,835/oz (critical level for bullish continuation)
- Resistance: $2,935/oz (immediate barrier to upward momentum)
- Long-Term Target: Above $3,075/oz (projected by Goldman Sachs for 2025)
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Look to enter long positions during a dip to $2,835/oz, targeting a rebound toward $2,935/oz.
- Breakout Entry: Consider entering above $2,935/oz, aiming for a rally toward $3,075/oz.
Risk Management
- Stop Loss (SL): Place SL below $2,835/oz to protect against a breakdown of the bullish channel.
- Take Profit (TP): Set TP at $3,075/oz, aligning with Goldman Sachs’ 2025 forecast.
Key Indicators to Monitor
- RSI: A rebound from oversold levels (below 30) could signal renewed buying pressure.
- Moving Averages: The 50-day MA ($2,870/oz) acts as dynamic support; a sustained close above it reinforces bullish momentum.
Rationale for Strategy
- Bullish Drivers: Central bank accumulation (e.g., China’s 500-tonne target), Fed rate cuts, and geopolitical risks (U.S.-China tariffs) underpin demand.
- Volatility: Anticipate price swings around Fed announcements (March 19 meeting) and China’s policy responses to tariffs.
Final Advice
- Open Order: Enter long positions during a pullback to $2,835/oz or on a breakout above $2,935/oz.
- Close Order: Secure profits at $3,075/oz or adjust TP if resistance at $2,935/oz holds.
- Decision-Making: Monitor RSI for oversold conditions and moving averages for trend alignment. Adjust SL/TP based on volatility around macroeconomic events.
Gold’s safe-haven appeal and structural demand from institutions position it for further gains, but disciplined risk management is critical to navigating short-term turbulence.
