Contents
Market Recap
Gold has experienced significant volatility in recent days, with a notable 3% drop on May 14, 2025, driven by currency shifts and overbought conditions. For traders seeking reliable platforms, Exness offers competitive conditions for XAU/USD trading.Current Price Action and Trends
Price Level
Gold is trading near key support zones, testing levels around $2,575–$2,564 after recent declines.Trend
Bearish momentum dominates as the USD Index strengthens and gold’s parabolic rally falters.Key Levels
| Support | Resistance |
|---|---|
| $2,575–$2,564 | $2,685 |
Long-Term Target
Upward projections suggest $3,357–$4,333.74 by year-end 2025, but short-term corrections are likely.Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy at $2,575–$2,564 with tight SL at $2,540.
- Breakout Entry: Sell short if resistance at $2,685 breaks, targeting $2,624 (first TP) and $2,585 (second TP).
Risk Management
- Stop Loss (SL): Place SL below support (e.g., $2,540) for longs or above resistance ($2,685) for shorts.
- Take Profit (TP): Aim for a 1:2 risk-reward ratio. For long positions: TP at $2,685 (first target) and $2,720 (second target).
Key Indicators to Monitor
- RSI: Overbought conditions (RSI >70) may signal corrections, while RSI <30 could indicate bullish reversals.
- Moving Averages: 200-day SMA acts as dynamic support/resistance.
Rationale for Strategy
- Bullish Drivers: Geopolitical risks or USD weakness could trigger rebounds.
- Volatility: High liquidity fluctuations warrant smaller position sizes.
Final Advice
Today’s bearish trend favors short entries at resistance or pullback longs at support. Strictly adhere to SL/TP rules, and prioritize exits if the USD Index continues to strengthen. Monitor RSI and the 200-day MA as confirmation signals before scaling positions.