Contents
Market Recap
Gold trading remains a high-reward opportunity, especially through platforms like Exness, which offers competitive spreads and reliable execution. Over the past week, XAU/USD surged to record highs near $3,005, driven by safe-haven demand amid escalating U.S.-EU trade tensions and geopolitical risks. The metal’s bullish momentum is further supported by a weaker U.S. Dollar and mixed economic data, including a drop in consumer sentiment.Current Price Action and Trends
Price Level:
Gold is currently trading near $2,985, consolidating after a brief pullback from its all-time high.Trend:
The overall trend remains bullish, with prices moving within an aggressive upward channel.Key Levels:
- Support: $2,905 (critical level for trend continuation)
- Resistance: $3,025 (immediate barrier for further upside)
- Long-Term Target: Above $3,125 (bullish breakout target)
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Look for a dip to $2,967 (Fibonacci 61.8% retracement) or $2,955 (Fibonacci 50% retracement) with bullish RSI divergence.
- Breakout Entry: Buy on a sustained close above $3,025, targeting $3,125.
Risk Management
- Stop Loss (SL): Place below $2,905 to protect against a trend reversal.
- Take Profit (TP): Set at $3,125 for long-term bullish targets.
Key Indicators to Monitor
- RSI: A rebound from oversold levels (below 30) on the hourly chart could signal renewed buying pressure.
- Moving Averages: The 50-period MA on the 4-hour chart confirms the upward trend.
Rationale for Strategy
- Bullish Drivers: Geopolitical tensions, U.S. economic uncertainty, and a weaker Dollar continue to fuel demand.
- Volatility: Expect intraday swings of 2,500–3,000 pips, especially around U.S. data releases like Retail Sales.
Final Advice
Gold’s resilience near $3,000 underscores its role as a safe haven. For today’s trade, prioritize buying on dips to $2,955–$2,967 with a tight stop below $2,905. If the breakout above $3,025 materializes, scale in for a potential rally toward $3,125. Monitor RSI and moving averages for trend confirmation, and avoid over-leveraging given the metal’s volatility.