Contents
Market Recap
Gold prices have shown volatility in recent days, influenced by macroeconomic factors like Federal Reserve rate decisions and geopolitical tensions. The current price of XAU/USD is approximately $2,918 as of March 5, 2025, with analysts noting a potential bearish correction to test support near $2,900 before resuming upward momentum. For traders seeking to capitalize on these movements, Exness offers a robust platform for executing XAU/USD trades with competitive spreads and real-time market analysis.Current Price Action and Trends
Price Level:
XAU/USD is trading near $2,918, reflecting a slight pullback from recent highs but maintaining bullish undertones.Trend:
The short-term trend appears bearish due to downward pressure from moving averages, though technical indicators suggest a potential rebound. Long-term momentum remains bullish, supported by central bank demand and inflationary pressures.Key Levels:
- Support: $2,900 (critical level for bullish reversal)
- Resistance: $2,985 (breakout target for upward continuation)
- Long-Term Target: $3,000–$3,200 by late 2025, per Goldman Sachs and UBS forecasts
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on a dip to $2,900, targeting a rebound toward $2,985.
- Breakout Entry: Enter long if prices close above $2,935, signaling a bullish breakout from the descending channel.
Risk Management
- Stop Loss (SL): Place SL below $2,875 to protect against a breakdown of support.
- Take Profit (TP): Set TP at $2,985 for short-term gains or $3,000 for medium-term targets.
Key Indicators to Monitor
- RSI: Look for oversold conditions (<30) near $2,900 to confirm bullish reversals.
- Moving Averages: Watch for crossovers between the 50-day and 200-day SMAs to gauge trend strength.
Rationale for Strategy
- Bullish Drivers: Fed rate cuts, geopolitical risks, and central bank gold purchases (e.g., China’s 500-tonne target).
- Volatility: Monitor upcoming events like the March 19 Fed meeting and U.S. employment data for price catalysts.
Final Advice
Open orders during early Asian or European sessions for optimal liquidity. Close positions if prices fail to break $2,985 or drop below $2,875. Use trailing stops to lock in profits during rallies. For long-term exposure, consider scaling into positions during pullbacks. Always prioritize risk-reward ratios (e.g., 1:2) to maximize returns.For real-time execution and advanced tools, Exness remains a top choice for XAU/USD traders.
