Contents
Market Recap
Gold trading remains dynamic, with XAU/USD showing increased volatility due to geopolitical tensions and monetary policy uncertainty. For traders seeking reliability in volatile markets, Exness offers a robust platform with competitive spreads and advanced tools. Recent analysis highlights corrections and potential upward momentum, making strategic positioning critical.Current Price Action and Trends
Price Level:
Gold is trading near $3,363.95 as of June 20, reflecting a cautious bullish trajectory.Trend:
The broader trend remains bullish, though short-term corrections are expected. A bearish pullback tested support near $3,355 earlier this week, followed by renewed demand.Key Levels:
- Support: $3,355 (immediate) and $3,245 (weekly pivot)
- Resistance: $3,455 (near-term target) and $3,500 (psychological barrier)
- Long-Term Target: Potential push toward $3,600+ if momentum sustains
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Look for buying opportunities near $3,355 with a bullish reversal candlestick pattern. This aligns with the recent corrective dip.
- Breakout Entry: Enter long if price sustains above $3,400, targeting $3,455. Confirm with a bullish crossover between short-term and long-term moving averages.
Risk Management
- Stop Loss (SL): Place SL 20-30 pips below entry. For pullback entries, SL at $3,330. For breakouts, SL at $3,375-3,380. Consider weekly support at $3,245 as a hard stop during major corrections.
- Take Profit (TP): Set TP1 at $3,425 (1:1 risk-reward), TP2 at $3,455 (1:2 RR), and TP3 at $3,500 if the trend accelerates.
Key Indicators to Monitor
- RSI (14): Look for overbought (>70) or oversold (<30) signals. Current RSI near 60 suggests room for upside.
- Moving Averages: Monitor the 50-period MA ($3,380) and 200-period MA ($3,300) for trend validation. A bullish crossover reinforces upward momentum.
Rationale for Strategy
- Bullish Drivers: Geopolitical risks, weak USD, and safe-haven demand continue to boost gold. J.P. Morgan’s analysis suggests sustained upward pressure in 2025.
- Volatility: Hindsight seasonal trends (peak demand in September) and ATR readings to gauge risk-reward ratios. Current volatility aligns with breakout potential.
Final Advice
Proceed with caution. A pullback entry at $3,355 offers safer risk-reward if XAU/USD retests support. For aggressive traders, a breakout entry above $3,400 with tight stops is viable. Monitor RSI and MA crossovers for confirmation. Set profit targets at $3,455 first, then scale out at higher levels if momentum holds. Adjust SL for weekly volatility (ATR ~$30).For hands-on execution, leverage Exness’ advanced charting tools and real-time alerts.
