Market Recap
Gold trading remains dynamic amid geopolitical tensions and central bank policy shifts. If you’re considering trading this asset, platforms like Exness offer competitive execution speeds and low spreads for XAU/USD.
Current Price Action and Trends
Price Level:
Gold stabilized near $3,021–$3,025 after a recent rally above $3,000, with volatility influenced by U.S. economic data and safe-haven demand.
Trend:
Bullish momentum persists despite a minor correction, with prices rebounding from the $3,004 swing low. The asset is consolidating between $2,981 and $2,993, indicating potential for upward continuation.
Key Levels:
- Support: $2,891 (short-term) and $2,956 (critical psychological level).
- Resistance: $3,008 and $3,045 (immediate hurdles).
- Long-Term Target: $3,145 or higher if the bullish channel holds.
Trading Strategy for XAU/USD
Entry Points:
- Pullback Entry: Look for long positions at $2,956 with a bounce from the bullish channel’s lower boundary.
- Breakout Entry: Initiate trades above $3,008 on a closing basis, targeting $3,045 or higher.
Risk Management:
- Stop Loss (SL): Place below $2,956 to limit downside exposure if support breaks.
- Take Profit (TP): Target $3,045, with trailing stops as prices approach resistance.
Key Indicators to Monitor:
- RSI: Above 70 signals overbought conditions; watch for a pullback to 65 as a re-entry zone.
- Moving Averages: A bullish crossover of short-term (50-period) and long-term (200-period) EMA could confirm upward momentum.
Rationale for Strategy:
Bullish Drivers: Geopolitical risks (Middle East tensions, U.S.-China trade dynamics) and potential Fed rate cuts fuel safe-haven buying. Volatility: Monitor U.S. retail sales and Fed meeting updates, as surprises could spark sharp moves.
Final Advice
Enter long positions during consolidations near $2,956–$2,981, aiming for a breakout above $3,008. Protect trades with a stop below $2,956. If the bullish channel holds, riding the trend up to $3,145 is feasible. Stay alert to macroeconomic news for volatility cues.
