Contents
Market Recap
Gold trading remains a prime opportunity for leveraged gains, particularly through trusted platforms like Exness, which offers precision for XAU/USD trading. Recent price action shows gold rebounding from a one-month low of $3,155 to $3,254, fueled by dollar weakness and anticipation of Federal Reserve policy shifts.Current Price Action and Trends
Price Level:
Gold is trading near $3,254 per ounce, holding support above the critical $3,155 level. The short-term bullish momentum suggests upward pressure toward $3,277.91 resistance.Trend:
The immediate trend is bullish, with the U.S. dollar’s decline acting as the primary catalyst. However, technical indicators show potential for consolidation before resuming the uptrend.Key Levels:
- Immediate Support: $3,155 (critical psychological level)
- Near-Term Resistance: $3,277.91 (April highs)
- Long-Term Target: $3,300+ if bullish momentum persists
Support:
The $3,155 level remains the linchpin β a break below could trigger deeper corrections.Resistance:
$3,277.91 acts as the primary hurdle before testing $3,300 territory.Long-Term Target:
Analysts project gold could reach $3,300-$3,500 by year-end if macroeconomic conditions (e.g., rate cuts, inflation) align favorably.Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on retests of $3,215-$3,230 with bullish momentum restart.
- Breakout Entry: Buy above $3,277.91 if NFP or Powell’s speech triggers USD weakness.
Risk Management
- Stop Loss (SL): Place 1.5-2% below entry ($3,200 for pullback entries, $3,270 for breakout).
- Take Profit (TP):
- 1st TP: $3,277.91 (near-term target)
- 2nd TP: $3,300 (3-5 days target)
Key Indicators to Monitor
- RSI: Check for overbought conditions above 70. Current RSI suggests room for upside.
- Moving Averages: 50-hour SMA ($3,240) and 200-hour SMA ($3,200) are key support zones.
Rationale for Strategy
- Bullish Drivers: Weaker dollar fundamentals, Fed rate cut expectations, and safe-haven demand.
- Volatility: Anticipate spikes during Powell’s speech (May 21) and PPI data releases.
Final Advice
Trade XAU/USD with a “buy the dip” approach, prioritizing pullback entries toward $3,215-$3,230. Maintain tight stops below $3,200 and scale partial profits at $3,277.91. Monitor real-time USD index and Fed news for volatility triggers. This strategy balances risk-reward given the bullish bias and potential macroeconomic catalysts.Always test strategies in demo accounts first. Trade responsibly.
