GOLD.F trade ideas
#7792025 | XAUUSD Supply Zone 1:20XAUUSD Supply Zone Appears in D1 Time Frame Looking Price Action for Long Term Sell Risk and Reward Ratio is 1:20
After 50 pips Profit Set SL Entry Level
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XAUUSDSo here we are at the very start of September 2025!
The price of Gold has pushed on past even 3430, where many people had their hearts set on sells. This includes me.
The difference experience makes is massive.
Simply by knowing how possible it is for price to push up and take out stop losses is crucial.
The general behaviour of Gold price action this year has been to make a new ATH and then drop drastically.
This means there is a chance of a retest of 3500 and/or a chance of 3506-3515-3524.
If this move up to 3490 is just a higher up fib retracement of the original drop, then this should be it.
The sell targets are always 2:1RR to begin with. Then hold some partial sells for 3350, 3309, 3289, 3209.
This is not financial advice and should be taken with a pinch of salt 👌🏼
Role of USD as the World Reserve CurrencyIntroduction
The United States dollar (USD) is not just America’s currency; it is the backbone of the global financial system. Since the mid-20th century, the USD has become the primary reserve currency of the world, meaning that central banks, governments, corporations, and investors across the globe hold significant amounts of dollars as part of their reserves for trade, stability, and financial security. Today, nearly 60% of global foreign exchange reserves are held in dollars, and the vast majority of international trade transactions—from oil to gold to manufactured goods—are priced and settled in USD.
The status of the dollar as the world’s reserve currency gives the United States enormous advantages, while also shaping the way global markets, international trade, and financial flows operate. But this role also comes with responsibilities and challenges, and it is increasingly being questioned in light of economic shifts, geopolitical rivalries, and the rise of alternative currencies such as the euro, the Chinese yuan, and even digital assets.
This essay will examine the historical background, structural reasons, benefits, challenges, and future prospects of the USD’s role as the world’s reserve currency, in about 3,000 words.
Historical Evolution of the USD as the Reserve Currency
The Gold Standard and Early Role of the Pound Sterling
Before the USD gained dominance, the British pound sterling served as the world’s reserve currency in the 19th and early 20th centuries. Britain’s colonial empire, its global trade networks, and its financial institutions in London made the pound the anchor of international commerce. The gold standard—where currencies were backed by physical gold—strengthened this system.
The Bretton Woods Agreement (1944)
The turning point for the dollar came during World War II. In 1944, the Bretton Woods Conference established the USD as the central currency of the international monetary system. The U.S. held the largest gold reserves in the world, and the USD was pegged to gold at $35 per ounce. Other currencies were pegged to the dollar, effectively making it the reference currency for global trade.
The Nixon Shock and Petrodollar System (1971–1973)
In 1971, President Richard Nixon ended the gold convertibility of the USD due to mounting fiscal deficits and inflation, marking the collapse of the Bretton Woods system. Despite this, the dollar retained its dominance. The U.S. secured agreements with oil-producing nations, particularly Saudi Arabia, to price and sell oil exclusively in dollars. This "petrodollar system" ensured continuous global demand for the USD, as all countries needed dollars to buy oil and other key commodities.
Modern Era of Dollar Dominance
From the 1980s to today, the dollar’s dominance has been reinforced by the size of the U.S. economy, deep financial markets, political stability, and the central role of American institutions like the Federal Reserve. Even during global crises—the 2008 financial crisis, the COVID-19 pandemic, or wars—investors flock to the dollar as a "safe haven" asset.
Why the USD Became the World Reserve Currency
Several structural factors explain why the USD became and has remained the world’s reserve currency:
Economic Size
The United States has been the largest or one of the largest economies in the world since the 20th century. Its vast production capacity, innovation, and consumer demand created a natural foundation for its currency to dominate.
Military and Political Power
U.S. military strength and its geopolitical influence underpin global trust in the dollar. Nations accept and hold dollars partly because of the stability of the U.S. government and its role as a guarantor of global security.
Financial Market Depth and Liquidity
The U.S. Treasury market is the largest, most liquid bond market in the world. Foreign governments and investors can easily buy and sell U.S. government securities, making the dollar a practical choice for reserves.
Network Effects
Once a currency is widely adopted, it becomes self-reinforcing. The more countries and corporations use the dollar, the more others are incentivized to do the same to reduce transaction costs and risks.
Petrodollar and Commodity Pricing
Since key global commodities such as oil, gold, and agricultural products are priced in dollars, nations must hold USD reserves to trade effectively.
Trust in U.S. Institutions
The Federal Reserve, U.S. Treasury, and American legal system are viewed as relatively transparent, stable, and reliable compared to many alternatives.
Functions of the USD in the Global Economy
The dollar plays multiple roles in the global financial architecture:
Reserve Currency for Central Banks
Central banks hold USD reserves to stabilize their own currencies, intervene in foreign exchange markets, and maintain confidence in their financial systems.
Medium of International Trade
More than 80% of trade in goods and services is invoiced in dollars. Even when trade does not involve the U.S., counterparties often prefer dollar settlement.
Anchor Currency for Exchange Rates
Many countries peg their currencies to the dollar, either formally (currency boards) or informally, to ensure stability in trade and investment.
Safe-Haven Asset
In times of global crisis or uncertainty, investors and governments buy U.S. dollars and Treasuries, considering them safer than other assets.
Investment Currency
Global investors prefer dollar-denominated assets, from U.S. bonds to equities, given their liquidity and returns.
Debt and Loan Currency
A significant share of global debt—sovereign, corporate, and private—is denominated in dollars, meaning borrowers worldwide rely on USD liquidity.
Benefits of USD Dominance
For the United States
“Exorbitant Privilege”
Coined by French Finance Minister Valéry Giscard d’Estaing, this phrase highlights America’s ability to borrow cheaply because of high global demand for its currency.
Low Borrowing Costs
The U.S. government can run larger fiscal deficits as the world consistently buys U.S. Treasury bonds.
Influence Over Global Finance
The U.S. can use its currency dominance to impose economic sanctions, monitor capital flows, and shape international institutions.
Resilience During Crises
Global capital flows into the U.S. during crises, strengthening the dollar and reducing the risk of capital flight.
For the Global Economy
Stability in Trade and Finance
Having a dominant currency reduces uncertainty and exchange rate risk in global transactions.
Liquidity and Access
Dollar markets provide unmatched liquidity, making it easier for countries and companies to trade and borrow.
Benchmarking and Pricing
Commodities, financial contracts, and international investments are priced in USD, creating uniform standards.
Challenges and Criticisms of Dollar Dominance
Despite its advantages, the dollar’s dominance has drawbacks:
Global Dependence and Imbalances
The world’s reliance on the dollar forces other nations to accumulate large reserves, often leading to trade imbalances.
Vulnerability to U.S. Policies
When the Federal Reserve changes interest rates, it affects not only the U.S. but also emerging economies, which may face capital flight, currency depreciation, or debt crises.
Weaponization of the Dollar
The U.S. uses the dollar system for sanctions against countries like Iran, Russia, and Venezuela. Critics argue this undermines trust and pushes nations to seek alternatives.
Triffin Dilemma
Belgian economist Robert Triffin pointed out that for the dollar to serve global demand, the U.S. must run persistent deficits, which eventually erode confidence in its currency.
Inflation Export
By printing more dollars to fund its deficits, the U.S. can indirectly export inflation to other countries holding dollar reserves.
Rise of Alternatives
The euro, Chinese yuan, gold, and even cryptocurrencies are increasingly seen as potential challengers to dollar dominance.
Alternatives to the USD
Euro (EUR)
Accounts for about 20% of global reserves. The eurozone is economically strong, but political fragmentation and sovereign debt crises weaken confidence.
Chinese Yuan (CNY / RMB)
China is pushing the yuan for trade settlement, especially under the Belt and Road Initiative. However, capital controls and lack of transparency limit its role.
Gold
Some countries are returning to gold as a hedge against dollar risk. Central banks, especially in emerging markets, are increasing gold reserves.
Cryptocurrencies and Digital Assets
Bitcoin and stablecoins are sometimes used for cross-border payments, but volatility and regulatory uncertainty limit adoption.
Special Drawing Rights (SDRs)
The IMF’s SDR, a basket of currencies, is designed as an alternative reserve asset, but it remains marginal in actual trade.
Future of the USD as Reserve Currency
The USD remains dominant, but challenges to its supremacy are growing. Possible scenarios include:
Continued Dominance
The dollar remains the world’s primary reserve currency due to inertia, trust, and unmatched liquidity.
Multipolar Currency System
A gradual shift where the euro, yuan, and other currencies share reserve roles alongside the dollar.
Fragmented Financial Order
Increased use of regional currencies or digital alternatives, particularly in response to U.S. sanctions.
Digital Dollar Revolution
The introduction of a U.S. central bank digital currency (CBDC) could reinforce the dollar’s global role by modernizing cross-border transactions.
Conclusion
The U.S. dollar’s role as the world reserve currency is a cornerstone of the modern global economy. It provides stability, liquidity, and efficiency in trade and finance, while granting the U.S. significant economic and geopolitical leverage. However, this dominance is not unchallenged. Structural imbalances, overreliance, and the rise of alternatives point toward a future where the dollar may face stronger competition.
Yet, for now, no other currency matches the dollar’s unique combination of trust, liquidity, and institutional support. The world remains deeply invested in the greenback, making it likely that the USD will continue to dominate global reserves and trade in the foreseeable future, albeit in a gradually more multipolar system.
Interest rate forecast to decreaseMarkets now expect the Federal Reserve to begin cutting interest rates as early as September. Traders have almost fully priced in a 25 basis point cut, with further easing likely in October and December, according to the CME FedWatch Tool.
“Recent U.S. economic data have prompted us to revise our rate forecasts lower,” BofA said, citing signs of a cooling labor market. “Recent weakness in employment data, slowing job growth, and other signs of labor market slack could prompt the Fed to change its risk assessment.”
The bank also said political pressure on the Fed, including criticism from President Donald Trump, could continue to weigh on the dollar.
“The risks to the Fed’s independence are well recognized, but now markets must also factor in the implications of institutional weakness at statistical agencies,” the analysts stressed.
Symmetrical Triangle Breakout on Gold Spot (75-Minute Chart)This chart illustrates a symmetrical triangle forming on the Gold Spot/US Dollar 75-minute timeframe, followed by a bullish breakout and a measured-move target.
1. Pattern Structure
Upper Trendline (Resistance): Connects a series of lower highs (peaks) sloping downward.
Lower Trendline (Support): Connects rising higher lows (troughs) sloping upward.
These two converging lines form the triangle’s boundaries, indicating decreasing volatility and a tug-of-war between buyers and sellers.
2. Breakout
Price closes decisively above the upper (resistance) trendline, signaling buyer dominance and the end of consolidation.
Breakouts from symmetrical triangles can occur in either direction; here, it’s upward, confirming a bullish continuation.
3. Volume and Confirmation
Although not shown on this chart, volume typically contracts during the triangle formation and then expands on the breakout, validating the move.
4. Measured-Move Target
The vertical distance of the triangle’s base (the widest part between the first high and first low) is projected from the breakout point.
This projection marks the price target labeled “Target” on the chart, suggesting the potential upside objective for the bullish move.
Tue 26 Aug Gold Trade Update - Target 1 and Target 2 reachedOn Tuesday 26 Aug, I shared a gold trade idea (please refer to previous post)
Buy 3365
stoo loss 3350
Target 1: 3390
Target 2: 3400
Target 3: 3420
Target 1 and Target 2 reached !
Hooray !
Target 3 might have some challenge, price might come down before going up again.
Generally speaking, Target 2 can take profit already.
Bull-Bear Game in a Volatile Gold MarketBull-Bear Game in a Volatile Gold Market: Short-Term Pressure, Medium-Term Bearish
The market is engaged in a fierce battle at the key $3,380 level, and gold is on the eve of a directional decision.
The gold market is currently locked in a tug-of-war between bulls and bears. In the medium term, a bearish trend is dominant, with four consecutive upper shadows on the monthly chart providing a solid foundation for bearish sentiment.
Fundamentally, previous expectations of tariffs have been fully priced into the market, and even if new tariff measures are introduced, they will be unlikely to replicate the impact they had during the initial stages of Trump's return to the White House.
The impact of global geopolitical developments is also gradually waning—these "minor" actions lack the participation of powerful countries, and the market reaction is much weaker than before.
The topic of a Fed rate cut has been repeatedly hyped by the market for two years, resembling the story of "the boy who cried wolf."
The current market uncertainty lies in whether gold will break through the resistance area of 3,400-3,410, break a new high, and then fall, or begin a sweeping decline below 3,400-10. This month's monthly close is crucial and provides valuable insights into the medium-term trend.
Short-term Dynamics: News Triggers Volatility
Yesterday morning, news of the removal of Federal Reserve Board Governor Tim Cook triggered sharp market volatility, with gold prices instantly jumping over $30.
The price remained range-bound between 3367 and 80 throughout the day, breaking through the 80 mark in late US trading, shifting into a range of 10 points above.
Today's key intraday support has risen to 3365, with core weekly support at 3330-35. Regarding resistance, 3385 was broken yesterday, but prices are currently under pressure there.
Currently, attention should be paid to resistance in the 3385-3394 area. Short-term support lies in the 3370-74 area. A break below this support level could signal the start of a correction.
Technical Analysis: Multiple Timeframe Signals
From the daily chart, despite yesterday's strong bullish trend, the upper and lower Bollinger Bands are narrowing, making the uptrend less pronounced. Current support lies at 3370-71 near the MA5 moving average and the middle band at 3357.
The daily MACD indicator has formed a golden cross near the zero axis, and the STO indicator is overbought, indicating that prices are fluctuating at a high level.
The 4-hour chart shows the initial formation of a death cross in the MACD, and the STO indicator is converging, suggesting that prices may enter a period of volatile correction. In the short term, focus on the 3382-3379 double moving average, followed by support at 3366 near the middle moving average.
The hourly chart signals are clearer, with the MACD death cross and large volume, and the STO indicator correcting downward, suggesting weak price fluctuations. Current pressure is concentrated around 3379-3381, followed by 3374.
Trading Strategy: Cautious Positioning
Based on comprehensive technical analysis, the gold market is currently in a high-level volatile pattern, and continued pursuit of gains is not recommended.
Consider shorting in the 3390-93 area, with a stop loss if the 5-minute moving average breaks through 3400, and target the 74-65-60-55 areas. If the 1-hour moving average breaks below 74, shorting on a rebound is advisable.
On the downside, we need to wait for signs of stabilization in the 3362-3353-3343 area before considering buying on a rebound.
The market is about to make a directional move. The $3400-3410 range will become a watershed between bulls and bears—a breakout would open up new upside potential, while a pullback under pressure could trigger a correction.
For investors, it's best to remain patient and wait for the market to determine its own direction before taking action.
Gold Intra-Day Analysis 27-Aug-2025Gold is stuck in a higher time frame consolidation range.
We saw couple of momentum price movement during August which was mainly related to NFP and the other during Powell speech at the Jackson Hole Symposium.
The main areas of interest for Gold are: 3355, 3385, 3400 & 3430s
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XAU/USD Intraday Plan | Support & Resistance to WatchGold briefly broke above the $3,386 resistance, but failed to hold and has since pulled back, now trading around $3,376. The rejection highlights $3,386 as a key barrier, while price remains supported above the $3,363 level with the 50MA (pink) still trending upward.
If buyers can reclaim and sustain above $3,386, the next upside targets are $3,406 and $3,422. On the downside, a break below $3,363 would expose the $3,347–$3,328 support zone, with further weakness opening the door toward the Secondary Support Zone ($3,304–$3,281).
📌Key Levels to Watch
Resistance:
$3,386
$3,406
$3,422
Support:
$3,363
$3,347
$3,328
$3,304
$3,281
Gold Faces Upward Pressure from Multiple SourcesGold is reacting to risks tied to the Trump–Cook showdown, Nvidia earnings, Fed independence, PCE data, and Powell’s dovish short-term shift on rates at Jackson Hole, all of which are giving the metal upward pressure. Key resistance levels stand at 3377, 3384, 3400, and 3411. A break of 3377 and 3384 could increase volatility for the rest of the day.
Intraday gold trend analysis and trading strategiesGold closed positive on the daily chart and retreated slightly after opening in the morning. The overall trend is still fluctuating, waiting for a breakthrough. From the 4H chart, we can see that the MACD indicator is golden cross and running with large volume, and the dynamic indicator is showing a broken line and pressing down, which means that there may be a decline in the short term. Currently, the 4H middle line is near 3345, which is consistent with our judgment of short-term bottom support. Conservative traders can wait for it to fall back to the 3356-3345 area and then enter the long position, with the target looking at 3375-3390.
XAU/USD Intraday Plan | Support & Resistance to WatchGold is trading around $3,370 after the Asian session rally, which began with a manipulation-style dip lower, followed by a sharp bullish candle driving price into the $3,386 resistance. Price was rejected at this level and is now consolidating just above the $3,363 support.
Structure remains constructive as long as gold holds above $3,363, with both the 50MA (pink) and 200MA (green) starting to slope upward, providing short-term bullish momentum.
A clean break and hold above $3,386 would open the path toward $3,406 and potentially $3,422. On the downside, failure to defend $3,363 would expose the $3,347–$3,328 support zone, with deeper losses shifting focus back toward the Secondary Support Zone ($3,304–$3,281).
📌 Key Levels to Watch
Resistance:
$3,386
$3,406
$3,422
Support:
$3,363
$3,347
$3,328
$3,304
$3,281
🔎 Fundamental Focus – Tuesday, Aug 26
Key events today: Durable Goods Orders, Consumer Confidence, Richmond Manufacturing Index, plus FOMC speakers. Data may drive volatility in gold.
⚠️ Expect intraday swings — manage risk and wait for confirmation.
Gold price analysis August 25📝 Gold has reacted to selling pressure around 3378 but the bullish trend structure remains intact after Friday's session. On the H4 chart, the main candle confirms the bullish momentum, indicating that the market is in a favorable position for buyers. The preferred strategy is to wait for corrections to collect goods at the support zone, before aiming for the target of 3400.
📍 Notable trading zones:
Buy zone 1: 3359 - key support
Buy zone 2: 3345 - a price zone that was strongly rejected
You can short gold at the high level of 3375-3385.Gold fluctuated and corrected today, retreating to around 3360 and then rebounding to around 3370. It retreated again to around 3362 and continued to rise to around 3375, forming a narrow range of fluctuations. This state shows that the short-term market is digesting the impact of Powell's dovish remarks last Friday. The current narrow range of fluctuations not only digests and confirms the positive line of last Friday, but also shows that the market sentiment has calmed down. If the subsequent market wants to rebound further, then the fundamentals need to be positive again, otherwise it is still difficult to see much room for growth technically.
According to the current trend of the hourly chart, the main idea of gold is still to maintain a relatively strong expectation. It may not rise much, and there may be a pullback. Pay attention to the short-term support near the 3360-3350 area on the bottom, and the short-term resistance near the 3375-3385 area on the top. As for operations, don't chase the rise at present. You can consider shorting once at 3375-3385, and look down to the 3365-3360 area in the short term.