Contents
Market Recap
Gold remains a prime asset for traders amidst ongoing geopolitical tensions and economic uncertainty. It is currently advantageous to trade gold using a reliable forex platform such as Exness. Recent price action reflects bullish momentum, with spot gold reaching record highs near $3,500 per ounce in April 2025.Current Price Action and Trends
Price Level:
Gold is trading near $3,335 at the time of writing, recovering from a dip to $3,268 last week.Trend:
The overall trend remains bullish, supported by safe-haven demand and weakening US dollar expectations.Key Levels:
- Immediate Support: $3,260 (critical floor)
- Immediate Resistance: $3,385 (near-term barrier)
- Long-Term Target: $4,000 (if 2025 forecasts maintain momentum)
Support:
- $3,300: Medium-term support
- $3,260: Critical psychological level
- $3,200: Stronger bullish confirmation zone
Resistance:
- $3,385: Short-term resistance
- $3,420: Mid-term barrier
- $3,500: All-time high resistance
Long-Term Target:
Analysts project potential climbs toward $4,000 if bullish catalysts (trade wars, inflation) persist.Trading Strategy for XAU/USD
Entry Points
Pullback Entry: Buy gold on dips toward $3,260 with tight SL at $3,180, targeting $3,380 (risk-reward 1:1.5).Breakout Entry: Sell gold on rallies above $3,373, aiming for $3,280 with SL at $3,410 (trend reversal play).
Risk Management
Stop Loss (SL):- Buy Trades: Place SL 3-5% below entry (e.g., $3,180 for $3,260 entry).
- Sell Trades: Set SL $30-50 above resistance (e.g., $3,410 for $3,373 entry).
Take Profit (TP):
- Buy Trades: Target $3,380 (1:1 risk-reward).
- Sell Trades: Aim for $3,280 (2:1 risk-reward).
Key Indicators to Monitor
RSI: A reading below 30 (oversold) could signal buying opportunities; above 70 (overbought) may indicate reversal potential.Moving Averages: Watch for crossovers between 50-day SMA ($3,215) and 200-day SMA ($3,132).
Rationale for Strategy
Bullish Drivers: Geopolitical risks, weaker USD, and central bank demand underpin strength.Volatility: Upcoming US GDP and CPI data could trigger sharp moves; trade with caution around news releases.
Final Advice
- Buy Gold: Use pullbacks to $3,260 as low-risk entries โ a bullish trend favors dips as buying opportunities.
- Sell Gold: Only consider short positions if price rejects $3,385 decisively. This would suggest bearish reversal potential.
- Monitor News: US non-farm payrolls and China trade updates later this week may trigger volatility. Adjust TP/SL accordingly.
- Position Sizing: Aim for 2% risk per trade to align with volatile precious metal swings.
Trade with discipline โ goldโs short-term swings can be unforgiving, but structured strategies maximize profit potential.
