Market Recap
Gold’s recent surge has captivated markets, with prices briefly piercing the $3,000/oz mark on March 14 and 17, 2025, driven by geopolitical tensions, inflationary pressures, and a weaker U.S. dollar. While the LBMA Gold Price PM settled at $2,996.50/oz on March 17, the psychological significance of this milestone has amplified investor interest. For traders seeking to capitalize on this volatility, platforms like Exness offer robust tools for navigating XAU/USD’s dynamic landscape.
Current Price Action and Trends
Price Level:
Gold (XAU/USD) is trading near $3,031/oz as of March 21, 2025, oscillating within a bullish channel.
Trend:
Short-term bullish momentum persists, with moving averages signaling upward pressure. However, technical indicators suggest potential for a bearish correction.
Key Levels:
- Support: $3,010 (critical breakout level for bearish reversal)
- Resistance: $3,040 (immediate upside barrier)
- Long-Term Target: $3,095+ if resistance is breached
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Look for a dip toward $3,010–$3,020 after testing $3,040 resistance. Confirm with RSI rebound from oversold zones.
- Breakout Entry: Enter long if price closes above $3,055, signaling a bullish continuation toward $3,095.
Risk Management
- Stop Loss (SL): Place below $3,010 to protect against a breakdown of the bullish channel.
- Take Profit (TP): Target $3,095 initially, with potential extension to $3,125 if momentum persists.
Key Indicators to Monitor
- RSI: Watch for divergence or reversal signals near overbought/oversold levels.
- Moving Averages: 50-period and 200-period MAs on the H4 chart to gauge trend strength.
Rationale for Strategy
Bullish drivers include geopolitical uncertainty, inflation hedging, and dovish Fed expectations continuing to fuel demand. Additionally, anticipate sharp moves during U.S. economic data releases (e.g., NFP reports).
Final Advice
Gold’s technical setup suggests a high-risk, high-reward scenario. A decisive close above $3,055 could unlock fresh highs, but failure to hold $3,010 may trigger a deeper correction. Stay nimble, prioritize risk-reward ratios, and leverage Exness’s advanced trading tools for real-time insights.
