Gold (XAUUSD) technical analysis: Strong buy signal at $3,706. Support levels, resistance targets, stop loss strategy. September 2025 trading guide.
- Silver Prices Soars to 14-Year Peak: Shining Brighter Than Ever
- Gold Loses Ground, Silver Sparkles Ahead of Navratri Festivities
- Gold Price in India: Will Festive Shoppers Buy Gold Despite 40% GST-Linked Price Surge?
- Gold Investment Strategy: Metals make a compelling buy
- Vodafone Idea Soars 9% as Government Hints at AGR Breakthrough
Gold is currently trading at $3,706.60, just below its all-time high of $3,707.30. The chart displays a strong bullish uptrend that has gained significant momentum throughout September, with the price rising 6.6% month-to-date from $3,476.
Current Market Position: BUY Signal
Based on the technical analysis of your chart and current market conditions, gold presents a bullish outlook with a BUY recommendation, particularly on any dips to key support levels.
Key Technical Levels
Strong Support Zones:
- $3,690 – Immediate support (current consolidation area)
- $3,673 – Critical support zone (strong base)
- $3,660 – Key support level
- $3,628 – Weekly support trough
- $3,600 – Major psychological support
Resistance Hurdles:
- $3,707 – All-time high (current ceiling)
- $3,720 – Next resistance target
- $3,730 – Extended bullish target
- $3,750-$3,800 – Long-term upside potential
Trading Strategy
Entry Strategy: Buy on Dips
- Primary Entry: $3,690-$3,673 support zone
- Secondary Entry: Break above $3,707 with volume confirmation
- Stop Loss: $3,673 for long positions
- Target Prices:
- Short-term: $3,720
- Medium-term: $3,730-$3,750
- Extended: $3,800
Technical Indicators Analysis
| Indicator | Current Level | Signal |
|---|---|---|
| RSI (14) | 77.06 | Neutral-Bullish |
| MACD | 83.92 | Buy Signal |
| Moving Averages | Above 20,50,200-day | Strong Buy |
| ADX | 37.85 | Strong Trend |
| Bollinger Bands | Near Upper Band | Bullish Momentum |
The RSI at 77 indicates strong momentum without being severely overbought, while the MACD crossover confirms bullish momentum.
Market Fundamentals Supporting Gold
Bullish Drivers:
- Federal Reserve rate cut expectations (90% probability for September)
- Persistent geopolitical tensions
- Central bank buying (especially Asian banks)
- Weaker US Dollar trend
- Inflation hedge demand
Risk Factors:
- Dollar strength could pressure gold
- Potential profit-taking near all-time highs
- Economic data surprises
Trading Plan Summary
For Aggressive Traders:
- Buy: Above $3,707 breakout
- Stop: $3,690
- Target: $3,730-$3,750
For Conservative Traders:
- Buy: On dips to $3,673-$3,690
- Stop: $3,660
- Target: $3,720-$3,730
Key Levels to Watch
| Level Type | Price | Action |
|---|---|---|
| Critical Support | $3,673 | Strong buy zone |
| Immediate Resistance | $3,707 | Breakout level |
| Next Target | $3,720 | Take profit 1 |
| Extended Target | $3,750 | Take profit 2 |
Risk Management
- Position Size: Risk 1-2% of capital per trade
- Stop Loss: Always below $3,673 for longs
- Take Profits: Scale out at resistance levels
- Time Horizon: Intraday to short-term swing trading
FAQs
Q: Should I buy gold at current levels?
A: Yes, with proper risk management. The trend remains bullish, and any dip to $3,673-$3,690 offers good entry opportunities.
Q: What’s the upside potential?
A: Immediate targets are $3,720-$3,730, with extended potential to $3,800 if momentum continues.
Q: What could trigger a sell signal?
A: A decisive break below $3,673 with volume would signal potential correction to $3,628-$3,600 levels.
Q: Is this a good time for beginners?
A: Exercise caution near all-time highs. Wait for pullbacks to support levels for better risk-reward ratios.
The technical setup strongly favors continued upside momentum, making this an attractive BUY opportunity, especially on any weakness toward the $3,673-$3,690 support zone. The trend remains your friend in this bull market for gold.