Contents
Market Recap
Gold price volatility has intensified in early April 2025, with prices surging to record highs before correcting sharply. Investors seeking exposure to this dynamic market can trade XAU/USD efficiently through platforms like Exness, which offers competitive spreads and reliable execution.Current Price Action and Trends
Price Level:
Gold recently traded between $3,113–$3,139 per ounce, showing consolidation after reaching historic peaks. The April 2 close at $3,139.90 marked a 19% annual gain, driven by geopolitical tensions and tariff-driven economic uncertainty.Trend:
Bullish momentum persists, though corrections like the 1.54% drop on April 4 signal heightened volatility. The broader uptrend remains intact due to safe-haven demand and central bank accumulation.Key Levels:
- Immediate Support: $3,113.89 (April 4 low)
- Critical Support: $3,205 (bearish breakout threshold)
- Resistance: $3,139.90 (April 2 record high)
- Long-Term Target: $3,275–$3,805 (analyst projections for 2025–2026)
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy near $3,113–$3,120, targeting retests of $3,139.90 resistance. Use RSI dips below 60 as confirmation.
- Breakout Entry: Look for sustained closes above $3,140, with upward momentum from EMA crossovers.
Risk Management
| Stop Loss (SL) | Place SL below $3,105 (below recent support) to limit downside risk during pullbacks. |
|---|---|
| Take Profit (TP) | Set TP at $3,135–$3,140 (near resistance) for shorter-term trades; extend to $3,169–$3,275 for longer horizons. |
Key Indicators to Monitor
- RSI: Overbought readings (above 70) may signal pullback opportunities; target dips to 55-60.
- Moving Averages: Watch 50-period EMA for trend strength; a downward cross signals caution.
Rationale for Strategy
Bullish drivers include prolonged tariffs, economic uncertainty, and central bank demand. However, price remains vulnerable to sharp corrections during volatility spikes.Final Advice
Initiate long positions on pullbacks to $3,110–$3,115 with tight SLs. Monitor U.S. economic data and tariff announcements for catalysts. For breakout trades, wait for confirmation above $3,140 before scaling in. Maintain discipline with TP levels, as gold’s volatility demands strict risk control. Always prioritize position sizing—never risk more than 2% of capital per trade.