Contents
Market Recap
Gold trading remains dynamic, with volatility driven by geopolitical shifts and central bank policies. Trading XAU/USD through platforms like Exness offers robust tools for navigating this market. Recent weeks saw gold prices fluctuate between $3,318.71 (April 23) and $3,348.75 (April 25), reflecting both bearish corrections and bullish rebounds.Current Price Action and Trends
Price Level
As of April 25, 2025, gold trades near $3,348.75, recovering from a dip to $3,318.71 earlier this week.Trend
The medium-term trend remains bullish, supported by institutional forecasts and inflationary pressures. However, recent price action signals a bearish correction, with traders testing support levels near $3,205.Key Levels
- Support: $3,205 (critical level for a bullish reversal), $3,318.71 (recent low)
- Resistance: $3,348β$3,350 (immediate hurdle), $3,685 (JP Morgan Q4 forecast), $4,500 (Goldman Sachs aggressive target)
- Long-Term Target: $4,500 (bullish scenario)
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on retest of $3,205β$3,250 support zone, targeting $3,348β$3,500 resistance.
- Breakout Entry: Enter long once price closes above $3,350, signaling bullish momentum toward $3,685.
Risk Management
- Stop Loss (SL): Place below $3,205 (critical support) or $3,300 (psychological level).
- Take Profit (TP):
- TP1: $3,348 (immediate resistance)
- TP2: $3,685 (JP Morgan Q4 target)
- TP3: $4,500 (aggressive long-term target)
Key Indicators to Monitor
- RSI: Watch for oversold signals (<30) if price drops below $3,318.
- Moving Averages: 50-day ($3,348) and 200-day MA (long-term trend gauge).
Rationale for Strategy
- Bullish Drivers: Central bank demand, inflation hedging, and geopolitical uncertainty.
- Volatility: Monitor US CPI, Fed rate decisions, and geopolitical news for sudden swings.
Final Advice
Open trades during pullbacks to $3,205β$3,250, using a tight SL below $3,200. Set TP1 at $3,348 and TP2 at $3,685. If price breaks above $3,350, adjust entries to capitalize on breakout momentum. Prioritize risk management, as gold remains sensitive to macroeconomic shifts.Pro Tip: Pair this strategy with economic calendars to anticipate volatility spikes around Fed meetings or US data releases.
