Gold Breakout Setup – Testing Yesterday’s High/Low

I’m trading gold (XAU/USD) using the same breakout strategy as with NAS100—placing a buy stop at yesterday’s high and a sell stop at yesterday’s low. With gold currently trading near its recent highs, this setup is designed to capture a clear directional move in a market already showing strong safe‐haven demand.

Market Context:
Recent reports indicate that gold has rebounded from a one-week low amid tariff uncertainty and robust central bank buying. With spot prices hovering around the mid-$2,900s and many analysts forecasting targets closer to $3,000, the bullish fundamentals remain intact. However, as gold remains overbought on some timeframes, caution is warranted if a pullback occurs.

Setup Details:

Buy Stop: Placed at yesterday’s high (e.g., around $2,950) – This order activates if price breaks above, suggesting renewed bullish momentum and further upside toward $3,000.
Sell Stop: Placed at yesterday’s low (e.g., near $2,900) – This order triggers if price falls below, indicating a potential retracement or a change in sentiment.

Risk Management & Strategy Rationale:

Why This Setup?
Confirmation: Waiting for a breakout reduces the risk of entering on a false move.
Market Drivers: With ongoing tariff-related uncertainties and geopolitical tensions, gold’s appeal as a safe haven remains strong.
Technical Levels: Key support and resistance levels are in play, with the recent highs providing resistance and the lows acting as support.

Risk Management:
Use a stop loss (e.g., based on recent swing levels or an ATR-based method) to protect against sudden reversals.
Consider a risk-to-reward ratio of at least 1:2 to ensure favorable trade management.