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Market Recap
Gold (XAUUSD) has experienced significant volatility over the past few days, influenced by escalating global trade tensions and shifting economic policies. Notably, on July 8, 2025, U.S. President Donald Trump announced sharply higher tariffs on 14 countries, including major trade partners like Japan and South Korea, with a deadline of August 1. This move intensified market uncertainty, leading investors to seek safe-haven assets like gold. Read more
In response to these developments, gold prices surged, reaching over $3,300 per ounce—a 26.6% increase in 2025. This rally was driven by heightened demand for gold amid geopolitical uncertainties. Read more
For trading XAUUSD, it’s advisable to use a reliable platform like Exness, which offers competitive spreads and advanced trading tools. You can access Exness here: Exness Trading
Current Price Action and Trends
Price Level:
As of August 3, 2025, gold is trading at approximately $3,300 per ounce, reflecting a strong bullish trend.
Trend:
The prevailing trend is bullish, characterized by higher highs and higher lows, indicating sustained upward momentum.
Key Levels:
- Support: $3,250
- Resistance: $3,350
Long-Term Target:
Analysts project that gold could reach $3,400 per ounce by the end of 2025, driven by ongoing geopolitical tensions and economic uncertainties. Read more
Trading Strategy for XAUUSD
Entry Points
- Pullback Entry: Consider entering a long position if gold retraces to the $3,250 support level and shows signs of bouncing back.
- Breakout Entry: Enter a long position if gold breaks above the $3,350 resistance level, confirming the continuation of the bullish trend.
Risk Management
- Stop Loss (SL): Place a stop loss below the $3,250 support level to limit potential losses.
- Take Profit (TP): Set a take profit target at $3,400 to capitalize on the anticipated upward movement.
Key Indicators to Monitor
- RSI: Monitor the Relative Strength Index (RSI) for overbought conditions; an RSI above 70 may indicate a potential reversal.
- Moving Averages: Keep an eye on the 50-day and 200-day moving averages for trend confirmation; a bullish crossover (50-day MA crossing above the 200-day MA) can signal continued upward momentum.
Rationale for Strategy
Bullish Drivers: Ongoing trade tensions and economic uncertainties are likely to sustain demand for gold as a safe-haven asset.
Volatility: The market is expected to remain volatile due to geopolitical developments, making it crucial to monitor price movements closely.
Final Advice
Trading gold requires careful analysis and timely decision-making. Utilize technical indicators and stay informed about global economic and political events to make well-informed trading decisions. Always ensure that your risk management strategies are in place to protect your capital.
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