Contents
Market Recap
Gold trading remains a high-reward opportunity, especially with platforms like Exness offering competitive spreads and reliable execution. Over the past few days, XAU/USD has shown bullish momentum, breaking through key resistance levels and testing new highs. The recent surge above $3,000/oz reflects broader macroeconomic trends, including geopolitical tensions and a weaker US dollar.Current Price Action and Trends
Price Level:
XAU/USD is currently trading near $3,038/oz, consolidating after a sharp rally from $2,500/oz in just 210 days.Trend:
The asset is firmly in an uptrend, with moving averages signaling bullish momentum and price action breaking through the 3005 resistance zone.Key Levels:
- Support: $3,020 (immediate), $3,005 (critical)
- Resistance: $3,055 (near-term), $3,100 (primary target)
- Long-Term Target: $3,105+ if the bullish channel holds
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Look for a dip to $3,020-$3,025 with bullish RSI divergence (below 70) and a rebound from the lower bullish channel boundary.
- Breakout Entry: Consider entering above $3,055 with a close above this level, targeting $3,100.
Risk Management
- Stop Loss (SL): Place below $3,005 (critical support) or $3,020 (immediate support) depending on entry point.
- Take Profit (TP): Set at $3,100 (primary target) with partial profit-taking at $3,075.
Key Indicators to Monitor
- RSI: Watch for overbought conditions (above 70) as potential reversal signals.
- Moving Averages: 50-period MA ($3,020) and 200-period MA ($2,900) remain key trend validators.
Rationale for Strategy
- Bullish Drivers: Geopolitical uncertainty, weaker USD, and inflation hedging demand continue to fuel gains.
- Volatility: Expect intraday swings of 50-100 pips; use hourly charts to time entries during Asian/European session overlaps.
Final Advice
Gold’s momentum suggests a continuation of the uptrend, but traders must respect support levels. A pullback to $3,020 offers a high-probability entry with defined risk. If the breakout above $3,055 materializes, target $3,100 while monitoring RSI for overextension. Always prioritize risk-reward ratios of 1:2 or better, and consider partial profit-taking at $3,075 to lock in gains. For reliable execution, Exness provides the tools needed to capitalize on this volatile yet rewarding market.