On the daily timeframe, gold broke through the upper boundary of a converging triangle and headed toward an all-time high. The horizontal resistance at $3,450 was also breached. This strong bullish momentum was preceded by a long-lasting accumulation of various negative factors in the US financial system, including expanding national debt, rising inflationary pressures due to Trump's tariff policies, and contracting manufacturing activity. All of these are prompting capital to flow into safe-haven assets in the medium term, further strengthening gold against the US dollar. In line with the short-term scenario, the Fed is likely to cut interest rates in September, which would additionally weaken the greenback and bolster XAUUSD.
From a technical perspective, gold prices tend to return to the previously breached support/resistance levels in order to push off from them and continue the initiated movement. So, the precious metal is expected to retest $3,450. Then a favorable opportunity to open a buy position could come in sight.
The overall recommendation is to buy gold when the price retests $3,450 per ounce. Profits should be taken at the level of $3,520. Stop Loss could be set at $3,380.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
