[GOLD August 5, 2025]

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Market Recap

Gold prices have been on an upward trajectory, bolstered by recent U.S. employment data that has intensified expectations for a Federal Reserve rate cut. [Source] This trend underscores the importance of selecting a reliable trading platform. For those interested in trading XAUUSD, Exness offers competitive spreads and robust trading tools, making it a favorable choice. [Source]

Current Price Action and Trends

Price Level:

As of August 5, 2025, spot gold is trading at approximately $3,375.89 per ounce, reflecting a modest increase of 0.1% from the previous session. [Source]

Trend:

The medium-term trend for gold remains bullish, supported by expectations of a Federal Reserve rate cut in September. [Source]

Key Levels:

• Support: $3,300
• Resistance: $3,450
• Long-Term Target: $3,500

Support:

The $3,300 level has acted as a significant support, where buying interest has previously emerged, preventing further downside movement. [Source]

Resistance:

The $3,450 level serves as immediate resistance, with the $3,500 mark representing a longer-term target, potentially achievable if bullish momentum strengthens. [Source]

Long-Term Target:

A sustained break above $3,366 could pave the way for gold to test the $3,500 level, aligning with bullish forecasts from institutions like HSBC, which raised its average 2025 gold price forecast to $3,015 per ounce, citing geopolitical risks. [Source]

Trading Strategy for XAUUSD

Entry Points

• Pullback Entry: Consider entering long positions on a pullback to the $3,300–$3,320 zone, aligning with the 50-period moving average and the 38.2%–50% Fibonacci retracement levels. [Source]
• Breakout Entry: A close above $3,366 with increased volume could signal a resumption of the uptrend. Confirm with bullish RSI divergence above 60. [Source]

Risk Management

• Stop Loss (SL): Place the stop loss below the recent swing low, around $3,245, to protect against unexpected market reversals. [Source]
• Take Profit (TP): Set the first take profit target at $3,366, the immediate resistance level, and consider a second target at $3,500, aligning with long-term bullish forecasts. [Source]

Key Indicators to Monitor

• RSI: The Relative Strength Index (RSI) is currently at 55, indicating neutral market conditions. Watch for divergence during pullbacks to identify potential reversal points. [Source]
• Moving Averages: The 50-period moving average is at $3,310, providing dynamic support. A crossover above the 200-period moving average at $3,280 would confirm bullish momentum. [Source]

Rationale for Strategy

• Bullish Drivers: Safe-haven demand from U.S.-China trade uncertainty and Fed rate cut expectations remain in play. [Source]
• Volatility: Monitor Federal Reserve policy statements and geopolitical developments, as these often trigger sharp price swings. [Source]

Final Advice

Given the current market dynamics, a cautious approach is recommended. Prioritize breakouts above $3,366 with tight stop losses. If entering on pullbacks, ensure the price holds above $3,245. Exit 50% of positions at $3,366 and ride the remainder toward $3,500. Stay informed about Federal Reserve commentary and geopolitical developments, as these can trigger sharp price swings. [Source]