Technical analysis by James-Bennett about Symbol PAXG: Sell recommendation (4/24/2024)

Hello dear traders! XAUUSD touched 2317 USD continuing its downtrend as the market gradually eased concerns about escalating tensions in the Middle East. This means that gold - which is considered a risk haven - has lost its position. Regarding impact news: comments from US Federal Reserve (FED) officials suggesting there is no urgent need to cut interest rates have reduced the attractiveness of gold prices. Meanwhile, US stocks continued their upward momentum. The Dowjones, S&P 500 and Nasdaq indexes all increased. Accordingly, many people are interested in stocks, causing money to flow into the gold market. On the new outlook for XAUUSD: In the near term and according to the 4-hour chart, risks are trending to the downside. The H4 setup shows strong resistance in the market. Looking closely, we can see that the H4 Candle touched Fibonacci 0.618 and turned down, showing that selling pressure is gradually strengthening, which means increasing the possibility of breaking the support level. But! If buyers hold this zone the price could test local highs before falling further.Trade activeTrade activeComment:Comment: US inflation indicators such as Consumer Price Index (CPI) and wage growth have remained high in the first quarter. Further signs of persisting price pressures would allow the Fed to continue with their argument of keeping interest rates at the current levels for a longer period. Historically, this scenario bodes well for the US Dollar and bond yields, and makes Gold less attractive.Comment: Gold price (XAU/USD) faces pressure while attempting to extend recovery above $2,320 in Wednesday’s early New York session. The near-term appeal of the precious metal remains weak as safe-haven demand wanes amid easing Middle East tensions. Also, investors turn cautious for bullions ahead of the United States Q1 Gross Domestic Product (GDP) release and the core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Thursday and Friday, respectively.Comment: Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.