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Market Recap
Gold prices have experienced slight declines recently, influenced by growing optimism surrounding U.S. trade negotiations, which have reduced demand for the metal as a safe-haven asset. Despite this, a broadly weaker U.S. dollar has helped mitigate further losses. [Source]
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Current Price Action and Trends
Price Level:
As of July 25, 2025, spot gold is trading at approximately $3,363.91 per ounce. [Source]
Trend:
The medium-term trend appears bullish, with prices recovering from recent dips and approaching key resistance levels. [Source]
Key Levels:
- Support: $3,300
- Resistance: $3,400
- Long-Term Target: $3,400
Support:
The $3,300 level has shown strong buying interest in the past, serving as a crucial floor for price action. [Source]
Resistance:
The $3,400 level represents a significant barrier to further growth, with a breakout above this level potentially leading to higher targets. [Source]
Long-Term Target:
Analysts project a long-term target of $3,400 for gold, aligning with current market forecasts. [Source]
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 $3,400, targeting $3,450. [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 65, indicating that gold is approaching overbought territory. However, a divergence between price and RSI can signal potential reversals. [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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