As of August 4, 2025, XAU/USD (Gold/USD) has broken above the key $3350 level on the 1-hour chart, indicating a technically bullish scenario. Recent developments such as rising global geopolitical risks and expectations of a Fed rate cut have supported the gold market, allowing prices to steadily rise while holding key support levels.
This article evaluates future movements of XAU/USD using key indicators like moving averages, MACD, ADX, and volume based on a technical analysis perspective.
The chart shows the short-term moving average (blue: 50EMA) clearly crossing above the medium (red) and long-term (dark red: 200SMA) moving averages, forming a pattern resembling a golden cross. This crossover is a strong technical signal indicating a trend reversal to the upside and is closely watched by traders.
The price is also well above these moving averages, providing confirmation for potential dip-buying opportunities.
The MACD (Moving Average Convergence Divergence) is a tool that visualizes the direction and strength of momentum. Currently, the MACD line (yellow) is above the signal line (red), with the histogram firmly in positive territory. This pattern suggests the rally is supported by strong momentum, not just a short-term rebound.
The MACD slope is also notably upward, indicating sustained short-term buying pressure.
The ADX (Average Directional Index) measures trend strength rather than direction. In this chart, the ADX remains above 70, highlighting a very strong bullish trend.
Readings above 25 indicate a solid trend, but reaching 70 is rare and signals a high level of trend reliability.
During the breakout above $3350, trading volume also surged—indicating a breakout supported by strong participation rather than speculative spikes. This type of breakout is considered reliable and reflects genuine market consensus.
The alignment of rising price and volume is a crucial element in technical analysis and often signals the potential for trend continuation.
| Level | Price | Significance |
|---|---|---|
| Short-Term Resistance | $3380 | Recent local high acting as resistance |
| Next Target | $3400 | Psychological resistance at round number |
| Short-Term Support | $3330 | Top of recent range; likely rebound zone |
| Medium-Term Support | $3300 | Overlapping with 50EMA, supported by moving average |
Currently, XAU/USD displays multiple aligned bullish signals in its technical analysis. The breakout of moving averages, strong MACD momentum, high ADX readings, and increasing volume all support the continuation of the uptrend.
However, caution is advised due to potential short-term overheating. Temporary profit-taking near $3380 may occur. If a pullback happens, the $3330–$3300 zone will be a key area to watch for potential entries.
For short-term trades, targeting a rebound from this support band is reasonable, while medium-term traders may follow the ongoing bullish momentum.
Disclaimer: This article is for informational purposes only and does not constitute specific investment advice. Please conduct your own research and risk management before making investment decisions.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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