📆 Weekly XAU/USD Forecast – May 6, 2025
Gold (XAU/USD) surged over 600 PIPS in early Asian trading on May 6, responding to a wave of risk-off sentiment following escalating geopolitical tensions and a sharp uptick in physical demand across Asia — notably from China and Japan.
This explosive move may mark the beginning of a broader bullish phase, especially if global uncertainties persist.
🔍 Why Is Gold Rising Again?
1️⃣ Geopolitical Escalation:
Over 19 Ukrainian UAVs targeted Moscow overnight.
The timing, just before Russia’s Victory Day (May 9), spooked global investors and fueled a rush toward safe-haven assets.
2️⃣ Massive Physical Demand from Asia:
Reports confirm China is quietly stockpiling gold at record levels.
Both institutional and retail investors in Asia have returned aggressively to the bullion market.
3️⃣ Fear & FOMO Driving Price Action:
Asian markets saw a buying frenzy, with prices accelerating past resistance levels.
Classic technical pullbacks are being ignored as bullish momentum dominates.
📊 Technical Outlook – H4 + Daily Chart Focus
Gold has cleanly defended the 3312 zone and broken above key resistance areas with strong momentum.
The alignment of MA13, MA34, and MA89 on higher timeframes signals a confirmed trend reversal, backed by volume.
🔑 Key Technical Levels
Support:
3355
3335
3313
Resistance:
3380
3405
3443
3470
🎯 Trade Plan for May 6 – Bullish Bias
Avoid SELL positions unless clear exhaustion patterns emerge. Momentum is heavily bullish, and sentiment is driven by real-world geopolitical events.
🔵 Buy Zone #1
Entry: 3314 – 3312
Stop Loss: 3308
Take Profit: 3318 → 3322 → 3326 → 3330 → 3340 → 3350 → ???
🔵 Buy Zone #2
Entry: 3335 – 3332
Stop Loss: 3329
Take Profit: 3340 → 3344 → 3348 → 3352 → 3356 → 3360
🔴 Sell Zone (High Risk)
Entry: 3343 – 3345
Stop Loss: 3359
Take Profit: 3339 → 3335 → 3330 → 3326 → 3320
🧭 Final Thoughts
Gold is currently in hyper-bullish territory, and the 3313 level (aligned with VPOC + Fibo 0.5) is now confirmed as a strong base of support.
As geopolitical risks rise and China ramps up gold purchases, expect further capital inflows into the yellow metal.
➡️ Tip for Traders: Stay patient. Don’t chase early sell signals. Let the market breathe, and align your entries with Asia-led momentum and safe-haven demand.
