Contents
Market Recap
Gold prices experienced volatility in recent days, dipping sharply to $3,268.50 as of May 29, 2025, due to U.S. court rulings on tariffs and shifting economic sentiment. This pullback follows a bullish trend this year, with prices up ~25% YTD. Whether you’re a short-term trader or long-term investor, Exness remains a top platform for executing gold trades due to its tight spreads and margin flexibility.Current Price Action and Trends
Price Level:
XAU/USD hovers near $3,299.05 as of May 30, 2025, consolidating after testing support near $3,250.Trend:
The broader trend remains bullish, with a recent correction providing a potential buying opportunity. The bearish pullback appears corrective, not trend-reversing.Key Levels:
- Support: $3,250 (critical psychological floor)
- Resistance: $3,300 (previous bull run high)
- Long-Term Target: $3,390 (12-month forecast)
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on dips to $3,250-$3,260, targeting the $3,300 resistance zone. Confirm with bullish RSI divergence or bullish candlestick patterns (e.g., hammer, engulfing).
- Breakout Entry: Go long if prices break above $3,300 with increased volume, targeting $3,350 as the first extension level. Monitor for bullish momentum confirmation using the MACD histogram.
Risk Management
- Stop Loss (SL): Place under $3,250 (below recent support) for pullback entries, or below $3,280 for breakout entries. Risk 1-2% of account size per trade.
- Take Profit (TP): Scale out at $3,300 (1:2 risk-reward ratio) and $3,350 (aggressive entry). Traders with longer time horizons may hold partial positions toward $3,390.
Key Indicators to Monitor
- RSI: Look for readings below 35 on the 4-hour chart to signal oversold conditions. A rebound above 50 could confirm bullish momentum.
- Moving Averages: Watch the 50-period SMA (short-term trend) and 200-period SMA (long-term trend). A “golden cross” formation (50 SMA crossing above 200 SMA) would reinforce bullish bias.
Rationale for Strategy
Bullish drivers remain intact:- Geopolitical Uncertainty: Trade tensions and geopolitical risks continue to boost safe-haven demand.
- Economic Volatility: Weak U.S. GDP data (-0.2% Q1) and mixed inflation signals may revive inflation-hedge demand.
- Seasonality: Pre-FOMC meetings often see gold accumulation as markets price in policy shifts.
Final Advice
Prioritize pullback entries today due to the price hovering near support. Set tight stops under $3,250 to limit downside risk. If the $3,300 resistance breaks, consider scaling into positions but stay cautious of a “bull trap” if volume remains weak. Monitor real-time news for updates on U.S. fiscal policy and court rulings impacting dollar strength.
