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Market Recap
Over the past few days, gold prices have experienced notable volatility, influenced by a combination of economic indicators and geopolitical developments. As of July 20, 2025, spot gold is trading at approximately $3,348.50 per ounce. This surge is largely attributed to persistent economic uncertainties and escalating geopolitical tensions, which have bolstered gold’s appeal as a safe-haven asset. Source
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Current Price Action and Trends
Price Level:
Gold is currently trading at $3,348.50 per ounce, reflecting a significant increase from recent lows. Source
Trend:
The medium-term trend appears bullish, with prices recovering from recent dips and approaching key resistance levels. However, the market remains susceptible to rapid shifts due to ongoing economic and geopolitical factors.
Key Levels:
- Support: $3,300 (near April 16 close of $3,251.19)
- Resistance: $3,350 (psychological level)
- Long-Term Target: $3,400 (aligning with 2025 forecasts)
Trading Strategy for XAUUSD
Entry Points
- Pullback Entry: Consider entering long positions on a pullback to the $3,300β$3,320 zone, aligning with the 50-period moving average and the 38.2%β50% Fibonacci retracement levels. Source
- Breakout Entry: Enter long if the price closes above $3,350, targeting $3,400. 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 $3,400, 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 news for volatility spikes. 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 $3,400. Stay informed about Federal Reserve commentary and geopolitical developments, as these can trigger sharp price swings. Source
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