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Market Recap
Gold has been a focal point for traders and investors, with its price movements reflecting a complex interplay of economic indicators, geopolitical tensions, and market sentiment. Trading XAUUSD in Exness offers robust tools and competitive spreads, facilitating effective execution of trades. Learn more
Current Price Action and Trends
Price Level:
As of July 7, 2025, spot gold is trading at approximately $3,348.50 per ounce, reflecting a consolidation phase following a sharp correction from the all-time high of $3,500.05 in April. Read the full report
Trend:
The market exhibits consolidative behavior, with bullish momentum paused by profit-taking and dollar strength. A bearish correction from $3,500 to $3,211 occurred in early May due to easing trade tensions and USD recovery. Explore trends
Key Levels:
- Support: $3,200 (psychological level) and $3,211 (recent low)
- Resistance: $3,372 (current price) and $3,500 (record high)
- Long-Term Target: A sustained breakout above $3,500 could target $3,600, while a breakdown below $3,200 may retrace toward $3,000. See more details
Trading Strategy for XAUUSD
Entry Points
- Pullback Entry: Consider entering long positions on a pullback to the $3,300β$3,320 zone, aligning with the 50-period moving average and the 38.2%β50% Fibonacci retracement of the rally from $3,211 to $3,372. Learn about entry strategies
- Breakout Entry: A close above $3,372 with increased volume could signal a resumption of the uptrend. Confirm with bullish RSI divergence above 60. Get more info
Risk Management
- Stop Loss (SL): Place a stop loss at $3,250, just below the 61.8% Fibonacci retracement, to protect against false breakouts. Find out more
- Take Profit (TP): Set initial take-profit targets at $3,400β$3,450, near resistance zones. Explore profit strategies
Key Indicators to Monitor
- RSI: A reading below 50 may indicate oversold conditions, favoring long entries. Watch for divergence during pullbacks. Learn about RSI
- Moving Averages: The 50-period MA ($3,320) and 200-period MA ($3,000) are critical for trend confirmation. Get moving average insights
Rationale for Strategy
- Bullish Drivers: Safe-haven demand from U.S.-China trade uncertainty and Fed rate cut expectations remain in play. Understand the bullish drivers
- Volatility: Monitor Federal Reserve policy statements and geopolitical developments, as these often trigger sharp price swings. Stay updated on volatility
Final Advice
- Entry Recommendation: Enter long positions on a pullback to $3,300β$3,320 with a stop loss at $3,250. Set partial take-profit at $3,400 and let the rest ride toward $3,500 if bullish momentum resumes. Read more about trading advice
- Cautionary Note: Avoid overleveraging. A break below $3,200 would invalidate the bullish thesis, triggering a deeper correction toward $3,000. Learn about risks in trading
- Execution Tip: Use the 5-minute or 15-minute chart to time entries during high-impact economic events (e.g., U.S. Services PMI, Fed meeting minutes). Discover execution techniques
By adhering to this strategy, traders can navigate the current gold market dynamics effectively, balancing potential rewards with prudent risk management.
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