Technical analysis by mswhitetrader about Symbol PAXG: Sell recommendation (7/19/2024)

Gold prices (XAU/USD) continued to come under selling pressure for the third straight day on Friday, falling further from all-time highs reached earlier in the week. The decline was mainly due to the US Dollar's (USD) recovery from its lowest in more than three months on Thursday, reducing demand for USD-denominated commodities. However, dovish expectations from the Federal Reserve (Fed) appear to have limited the decline in gold prices. The USD rose thanks to a solid recovery from a more than four-month low, largely due to the decline of the Euro after the European Central Bank (ECB) meeting. This is the main factor putting downward pressure on commodity prices, including gold. This price decline can also be attributed to profit-taking following a price increase of more than 6.5% since the beginning of the month. Geopolitical tensions and buying demand from central banks also helped limit gold price declines, suggesting that any further price declines could be seen as buying opportunities for investors. private. Price areas worth paying attention to: Buy zone: 2417 - 2415 Stop loss: 2412 Buy zone: 2400 - 2398 Stop loss: 2395 Resistance: 2480 - 2465 - 2453 - 2443 Support: 2417 - 2405 - 2400 - 2391 Upper border breakout: 2433 - 2443 Lower border breakout: 2414 - 2405Comment: Buy zone: 2417 - 2415 +40pips entry 2415Trade closed: target reached: Buy zone: 2417 - 2415 +70pips entry 2415Comment: Gold prices extended their losing streak for a third trading day, falling to nearly $2,410 during the European session on Friday. The precious metal is facing profit-taking after rising to a new record high above $2,480 on Tuesday.Comment: The gold price falling to the lowest level of 2,394 USD during the US session on Friday showed strong market volatility. This may be due to the impact of the stronger USD and high bond yields. When the USD appreciates, gold becomes more expensive for investors holding other currencies, reducing demand for gold. At the same time, higher US bond yields increase the opportunity cost of holding gold, since gold does not yield interest, making it possible for investors to turn to bonds to take advantage of higher yields.Comment: Gold prices attracted some buyers and broke a three-day losing streak amid a slightly weaker USD. US political developments prompted some reversal of the 'Trump deal' and weighed on the dollar. Bets on a Fed rate cut in September continue to weaken the USD and favor the unprofitable currency pair XAU/USD.