Technical analysis by winner-2008 about Symbol PAXG: Buy recommendation (3/13/2024)

Spot gold prices fell sharply on Tuesday as a strong U.S. inflation report dampened expectations for an imminent rate cut from the Federal Reserve. According to a report released by the U.S. Department of Labor on Tuesday, the consumer price index (CPI) increased by 3.2% year-on-year in February, higher than market expectations of 3.1%. At the same time, core CPI increased by 3.8% year-on-year, also exceeding expectations of 3.7%. However, the decline has not reached our expected price of $2,148. Therefore, while the general trend is still rising, the long force is still very strong, which makes it difficult for gold prices to continue to fall. Judging from the 60-minute chart, the current MACD indicator has a golden cross below the 0 axis, which means that the current price rebound will continue for some time. If the price breaks through the upper resistance level of $2,168, it will continue to rise. Even the 20-day moving average and the 50-day moving average may re-form a rising golden cross pattern. If the price breaks below $2,148, the decline will continue in the short term. So currently we are focusing on the $2148 support and $2168 resistance. However, the probability of gold price rising is still very high at present, and it is not recommended to open a short position.