GOLD (XAUUSD) -Monthly Analysis & Trading Plan (Aug 2025)
Title: XAUUSD: Correction in Progress, Patience is Key for the Next Move
**Chart:** XAUUSD Monthly (1M)
**Analysis Type:** ICT/SMC, Price Action, & Moving Average
Summary:
After a historic and powerful bull run that saw Gold (XAUUSD) breach all-time highs in the first half of 2025, the market has entered a significant corrective phase. The massive red candle in June signaled a strong reversal of momentum, and the current July candle confirms that sellers remain in control, albeit with less intensity. This is a critical juncture for long-term traders, and a strategic approach is required.
**Key Observations & Analysis:**
1. **Price Action & Market Structure:** The move from late 2024 through May 2025 was a textbook "impulsive leg." The sharp reversal in June 2025, with a powerful bearish candle, likely acted as a **liquidity grab** or a **high-volume distribution event**, trapping late buyers. The market is now in a clear **break in market structure (BOS)** to the downside on this long-term timeframe, suggesting the correction is not over.
2. **ICT/SMC Concepts:**
* **Imbalance/Fair Value Gap (FVG):** The rapid bullish move created significant imbalances on the monthly chart. Price often returns to fill these gaps. The current correction is likely heading to fill or test these inefficiencies.
* **Order Block (OB):** The massive bullish move in late 2024/early 2025 likely created a strong bullish order block. The current sell-off is heading toward this potential institutional demand zone.
* **Liquidity:** The lows from late 2024 and early 2025 will be key liquidity pools. Smart money will likely be targeting these areas for a potential reversal or accumulation.
3. **Moving Average Analysis (MMA):**
* The price is currently trading above both the purple and yellow moving averages, which are still pointing upward. This confirms the long-term trend remains bullish, and the current move is a correction within that trend.
* The **purple moving average** is a key support level to watch. A test of this level would be a high-probability event, and its reaction will be crucial for the next major move.
**Suggested Entry & Exit Levels:**
**1. Aggressive Entry (Short):**
* **Rationale:** The bearish momentum, though slowing, is still the dominant force. An aggressive trader could look for a continuation of the short-term bearish trend.
* **Entry:** A short entry could be considered on a pullback to the recent highs around **$3,400 - $3,500** if a strong bearish candlestick pattern forms on a lower timeframe (e.g., weekly or daily).
* **Stop Loss:** A tight stop-loss placed just above the recent high, for example, **$3,600**. This is a high-risk entry, so position sizing should be small.
* **Target:** The first major target would be the **moving average support level**, roughly in the **$3,000 - $3,100** zone. The ultimate target for a full correction would be the order block from late 2024, around **$2,800**.
**2. Conservative Entry (Long):**
* **Rationale:** The long-term trend is still bullish. The current move is a correction. The most prudent approach is to wait for a high-probability long entry at a key support level.
* **Entry:** Wait for price to reach the **purple moving average support zone (around $3,000 - $3,100)**. Look for a clear reversal signal on this level, such as a large bullish "pin bar" or "engulfing candle" on the monthly or weekly chart. This would be a high-probability demand zone for a reversal.
* **Stop Loss:** A stop-loss should be placed below this key support level, perhaps around **$2,850 - $2,900**, giving the trade room to breathe.
* **Target:** The first target for a new bullish leg would be the recent swing high around **$3,800**. The ultimate long-term target would be a new all-time high above **$4,000**.
Conclusion
The Gold market is in a crucial phase. The bullish party from earlier in 2025 is over for now, and a healthy correction is underway. **The most logical and safe approach is to wait for the market to complete its corrective move.** Do not attempt to catch a falling knife. Instead, be patient and wait for price to reach a key institutional demand zone (our moving average support or the late 2024 order block) and show a clear sign of reversal. This will present a high-probability, low-risk long entry for the next impulsive move up.
Disclaimer
This is not financial advice. Please perform your own due diligence and risk management. Trading involves a significant risk of loss.
Title: XAUUSD: Correction in Progress, Patience is Key for the Next Move
**Chart:** XAUUSD Monthly (1M)
**Analysis Type:** ICT/SMC, Price Action, & Moving Average
Summary:
After a historic and powerful bull run that saw Gold (XAUUSD) breach all-time highs in the first half of 2025, the market has entered a significant corrective phase. The massive red candle in June signaled a strong reversal of momentum, and the current July candle confirms that sellers remain in control, albeit with less intensity. This is a critical juncture for long-term traders, and a strategic approach is required.
**Key Observations & Analysis:**
1. **Price Action & Market Structure:** The move from late 2024 through May 2025 was a textbook "impulsive leg." The sharp reversal in June 2025, with a powerful bearish candle, likely acted as a **liquidity grab** or a **high-volume distribution event**, trapping late buyers. The market is now in a clear **break in market structure (BOS)** to the downside on this long-term timeframe, suggesting the correction is not over.
2. **ICT/SMC Concepts:**
* **Imbalance/Fair Value Gap (FVG):** The rapid bullish move created significant imbalances on the monthly chart. Price often returns to fill these gaps. The current correction is likely heading to fill or test these inefficiencies.
* **Order Block (OB):** The massive bullish move in late 2024/early 2025 likely created a strong bullish order block. The current sell-off is heading toward this potential institutional demand zone.
* **Liquidity:** The lows from late 2024 and early 2025 will be key liquidity pools. Smart money will likely be targeting these areas for a potential reversal or accumulation.
3. **Moving Average Analysis (MMA):**
* The price is currently trading above both the purple and yellow moving averages, which are still pointing upward. This confirms the long-term trend remains bullish, and the current move is a correction within that trend.
* The **purple moving average** is a key support level to watch. A test of this level would be a high-probability event, and its reaction will be crucial for the next major move.
**Suggested Entry & Exit Levels:**
**1. Aggressive Entry (Short):**
* **Rationale:** The bearish momentum, though slowing, is still the dominant force. An aggressive trader could look for a continuation of the short-term bearish trend.
* **Entry:** A short entry could be considered on a pullback to the recent highs around **$3,400 - $3,500** if a strong bearish candlestick pattern forms on a lower timeframe (e.g., weekly or daily).
* **Stop Loss:** A tight stop-loss placed just above the recent high, for example, **$3,600**. This is a high-risk entry, so position sizing should be small.
* **Target:** The first major target would be the **moving average support level**, roughly in the **$3,000 - $3,100** zone. The ultimate target for a full correction would be the order block from late 2024, around **$2,800**.
**2. Conservative Entry (Long):**
* **Rationale:** The long-term trend is still bullish. The current move is a correction. The most prudent approach is to wait for a high-probability long entry at a key support level.
* **Entry:** Wait for price to reach the **purple moving average support zone (around $3,000 - $3,100)**. Look for a clear reversal signal on this level, such as a large bullish "pin bar" or "engulfing candle" on the monthly or weekly chart. This would be a high-probability demand zone for a reversal.
* **Stop Loss:** A stop-loss should be placed below this key support level, perhaps around **$2,850 - $2,900**, giving the trade room to breathe.
* **Target:** The first target for a new bullish leg would be the recent swing high around **$3,800**. The ultimate long-term target would be a new all-time high above **$4,000**.
Conclusion
The Gold market is in a crucial phase. The bullish party from earlier in 2025 is over for now, and a healthy correction is underway. **The most logical and safe approach is to wait for the market to complete its corrective move.** Do not attempt to catch a falling knife. Instead, be patient and wait for price to reach a key institutional demand zone (our moving average support or the late 2024 order block) and show a clear sign of reversal. This will present a high-probability, low-risk long entry for the next impulsive move up.
Disclaimer
This is not financial advice. Please perform your own due diligence and risk management. Trading involves a significant risk of loss.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.