Market Recap
Gold trading remains a strategic play in volatile markets, with Exness offering competitive conditions for XAU/USD traders. Recent sessions have seen gold prices oscillate between $2,880 and $2,930, influenced by geopolitical tensions and anticipation of US inflation data.
Current Price Action and Trends
Price Level:
Gold trades near $2,911, consolidating Tuesday’s 1% rally above $2,900. The metal faces critical technical levels as markets await US CPI data.
Trend:
Short-term bullish momentum persists, with prices holding above the 21-day SMA ($2,910). The RSI (14) remains above 50, signaling potential upside.
Key Levels:
- Support: $2,895 (immediate), $2,865 (critical)
- Resistance: $2,935 (breakout level), $2,956 (all-time high)
- Long-Term Target: $2,975+ if bullish momentum continues
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on dip to $2,895 with bullish RSI divergence
- Breakout Entry: Enter long above $2,935 with confirmation from higher timeframes
Risk Management
- Stop Loss (SL): Below $2,865 to protect against trend reversal
- Take Profit (TP): Initial target at $2,975, with trailing stops above $2,956
Key Indicators to Monitor
- RSI: Watch for overbought signals above 70 to anticipate corrections
- Moving Averages: 21-day SMA ($2,910) and 50-day SMA as dynamic support/resistance
Rationale for Strategy
- Bullish Drivers: Geopolitical risks (US-China trade tensions), weaker USD, and potential Fed rate cuts
- Volatility: Monitor CPI data release – soft inflation could boost gold; hot data may trigger profit-taking
Final Advice
Trade with caution ahead of US CPI data. A bullish breakout above $2,935 offers high-reward potential, but respect the $2,865 support level. Use tight stops and scale positions to manage risk. Consider partial profit-taking at $2,956 to lock gains before testing all-time highs.
