Gold futures have recently broken through an important descending resistance line, indicating possible upward momentum. The price has moved past $3450 and is currently holding above $3458. This aligns with a positive outlook based on straightforward technical analysis using a single trendline on a 12-hour chart. As gold futures approach $3467, traders might consider entry points at $3453.2, $3450.9, and $3457.3. These levels correspond with VWAP standard deviations and reflect recent accumulation areas, potentially providing support if the price retraces.

Trading Strategies And Advice

Traders should think about setting limit buy orders at these levels and adjusting their positions to average into the trade. Taking partial profits near the $3473 to $3480 range is advised, based on value area and VWAP data. A good strategy might be to move stops to the entry point while targeting closer to the $3500 round number. Recent performance shows gold has risen by 3.49% over the week, 30.39% year-to-date, and 41.56% over the past year. These gains are driven by macroeconomic factors, including expectations of Fed easing, safe-haven demand, and tariff volatility. However, caution is crucial when trading volatile gold instruments. Gold has decisively moved above the $3450 resistance level, confirming the bullish trend we’ve been tracking for days. As of August 7, 2025, with futures above $3460, this technical signal indicates that a new upward trend may be beginning. This breakout fits within the context of recent fundamental strength. This movement is backed by new economic data that makes gold appealing. The July 2025 Consumer Price Index report, released this week, showed inflation rising to 3.8%, surprising analysts and highlighting gold’s role as a hedge against inflation. Additionally, global central banks added 250 metric tons to their reserves in the second quarter of 2025, providing further support for this rally.

Options And Future Market Insights

For those trading derivatives, pursuing this move by buying expensive call options outright can be risky, as implied volatility likely surged after the breakout. A more cautious approach is to sell cash-secured puts or bull put spreads with strike prices near the identified support zones. This allows for premium collection while waiting for a possible dip towards the $3450 to $3457 area. If there’s a retracement to the key VWAP level of $3453.2, it could be an excellent opportunity to start bullish positions. This level had significant liquidity before the breakout and is a sensible entry point for new buyers. Strategically entering here offers a far better risk-reward profile than buying at the current highs. This price action resembles the consolidation seen in late 2023 before gold surged past the previous $2100 highs. The breakout after a period of sideways accumulation is a classic bullish signal. That earlier period marked a significant turning point, and this might be another similar moment. For those who have held gold futures from before this week’s rise, it makes sense to take some profits now. The $3475 to $3480 area is a reasonable zone to scale back a portion of the position. Moving the stop-loss to the entry point would secure a risk-free trade while aiming for the larger $3500 psychological target. In the coming days, we should pay attention to the upcoming Non-Farm Payrolls report for signs of a weakening labor market. A weaker jobs report could increase the likelihood of the Federal Reserve pausing its rate-hiking cycle, which would likely boost gold further. The market is pricing in a more dovish Fed, and any supportive data will be positive for precious metals. Create your live VT Markets account and start trading now.

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