Contents
Market Recap
Gold remains one of the most liquid and geo-politically sensitive assets, making it ideal for trading on platforms like Exness. Recent price action shows bullish momentum, with gold closing at $3,440 on June 13, up $107 from previous sessions. This surge comes amid heightened global uncertainty and a renewed investor appetite for safe-haven assets.Current Price Action and Trends
Price Level:
Gold currently trades near $3,430-$3,440, reflecting a 1.36% intraday gain and a 7.72% monthly rise. Volatility persists, with prices fluctuating between $3,123 (May 15 low) and $3,488.20 (May 7 high).Trend:
Bullish momentum dominates, supported by economic and geopolitical fears. The commodity has trended upward since mid-May, overcoming a brief correction to $3,315.40 by June 1.Key Levels:
- Support: $3,315-$3,395 (June 1-3 consolidation zone and May 31 close)
- Resistance: $3,417.80 (June 3 intraday peak) and $3,488.20 (May 7 high)
- Long-Term Target: $3,500-$3,600 if bullish momentum sustains, aligning with analysts’ expectations of a new record high
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Target retracements to the 38.2% Fibonacci level (~$3,350-$3,370) if price consolidates after recent gains. Look for bullish reversal patterns (e.g., hammer candles) at this zone.
- Breakout Entry: Enter long positions if XAU/USD clears $3,417.80 resistance with high volume, signaling renewed upward momentum.
Risk Management
- Stop Loss (SL): Place at 2-3% below entry (e.g., $3,310-$3,330 if entering at $3,400). Prioritize SL levels below key support zones.
- Take Profit (TP): Set 1:2 risk-reward ratio. For example, target +2% TP ($3,470-$3,490) if risking 1% capital. Partially close positions at $3,430-$3,450 to lock gains.
Key Indicators to Monitor
- RSI: Watch for overbought signals (RSI >70) to anticipate pullbacks. A dip to RSI 40 may signal buying opportunities.
- Moving Averages:
- 50-day MA ($3,250?): Bullish crossover with lower MAs.
- 200-day MA ($2,900?): Sustained price above reinforces long-term strength.
