Technical analysis by James-Bennett about Symbol PAXG: Sell recommendation (4/25/2024)

Dear friends! On the world market, gold price reached 2,320.35, down 3.37 USD. Part of the reason for the price drop is that hedge funds have reduced their allocation to gold, while some tensions in the Middle East have cooled slightly in recent days. The downtrend could continue with a break from the bullish structure around $2,380. Overall, the downtrend is still clear, and short-term investors are still looking for correction opportunities on the chart. On H1 we see the general trend has changed since it reached the 2400 USD profit taking level, then the market moved into a consolidation phase under the strong breakout zone of 2328 USD which was actively defended by sellers on the lane correction and sell-off waves. The market's resistance zone continues to hold prices, but in a fundamentally negative context where prices are gradually approaching on a basis of decreasing volume, buyers have less and less opportunity to break the resistance zone. The technical downtrend may continue, the nearest potential target on H4 could be the 2150-2175 area. The bullish structure is under threat, the market is having a sharp sell-off.Trade activeComment: Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.Comment: Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.Comment: The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, regained the 106.00 level. The significant appreciation of the US dollar makes gold an expensive investment for holders of the currency.Comment: what do you think?Comment:Comment: