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Market Recap
Gold continues to shine as the ultimate safe-haven asset, capping a remarkable 15.2% surge year-to-date and hitting record highs of $3,057/oz recently. This bull run has been fueled by geopolitical tensions—including the resumption of hostilities in Gaza—and expectations of easing Federal Reserve monetary policy. For traders seeking exposure to this volatility, platforms like Exness provide reliable access to XAU/USD markets.Current Price Action and Trends
Price Level:
Gold is consolidating near $3,023 after reaching all-time highs, showing signs of short-term exhaustion but maintaining a bullish trajectory.Trend:
Uptrend intact with momentum indicators like the 200-day simple moving average (SMA) strongly supporting higher prices.Key Levels:
- Support: $2,980 (recent pullback low) and $2,960 (psychological level)
- Resistance: $3,057 (record high) and $3,087 (symmetrical projection from recent consolidation)
- Long-Term Target: $3,200+ aligning with ANZ Bank’s revised forecasts
Trading Strategy for XAU/USD
Entry Points
Pullback Entry: Target $2,980-$2,990 zone for a long position if the price corrects from current levels, aligning with trend resumption patterns. Breakout Entry: Look above $3,057 for a bullish breakout toward $3,087 with momentum confirmation.Risk Management
Stop Loss (SL): Set slightly below key support at $2,960 to protect against abrupt reversals. Take Profit (TP): First target at $3,057 (recent peak), second at $3,087 (chart-based projection).Key Indicators to Monitor
- RSI: Overbought conditions (above 70) may signal profit-taking; use dips below 60 as bullish confirmation.
- Moving Averages: Monitor the 50-period SMA on the 4-hour chart—holds above this level reinforce the uptrend.
Rationale for Strategy
Bullish Drivers: Geopolitical instability, dovish Fed expectations, and ETF inflows continue propelling gold higher. Volatility: Prepare for whipsaws with 20-30 pip daily ranges; use tighter SLs for intraday trades.Final Advice
Gold’s story remains one of fear-driven demand meeting structural weakness in the USD. While short-term profit-taking is possible near $3,000, the path of least resistance remains upward. Aggressive traders could look to leverage pullbacks—watch for price action reversal signals at key supports—but conservative approaches should prioritize trend alignment and downside protection. Monitor macroeconomic catalysts like Fed commentary and geopolitical headlines for breakout opportunities.