Technical analysis by mswhitetrader about Symbol PAXG: Sell recommendation (7/22/2024)

Gold prices (XAU/USD) edged up slightly during the Asian session on Monday, ending a three-day losing streak from last week's record high. Dovish expectations from the Fed and President Joe Biden's exit from the presidential race prompted some investors to pull back on bets on a Trump victory, supporting gold prices. In addition, concerns about slowing economic growth in China, geopolitical risks from the Russia-Ukraine war and conflict in the Middle East also helped increase gold prices. However, XAU/USD refrained from a strong buying move as traders awaited Friday's US Personal Expenditures Price Index (PCE) data for clues on Fed policy. From a technical perspective, last week's correction from all-time highs stopped short of the $2,390-$2,385 horizontal support level, coinciding with the 50% retracement of the June-July rally and the Moving Average. 100-period simple moving average (SMA) on the 4-hour chart. This area will be an important pivotal point for short-term traders. If the price breaks below this threshold, it will likely pave the way for deeper losses, dragging gold prices down to the 61.8% Fibo level around the $2,366-2,365 area, and then to the $2,352-2,350 area. Further selling could push the price down to the 78.6% Fibo level near the $2,334-2,332 zone, before XAU/USD eventually drops to the $2,300 mark. Interesting price areas: Buy zone: 2392 - 2390 Stop loss: 2386 Sell zone: 2419 - 2421 Stop loss: 2425 Resistance : 2420 - 2431 Support : 2403 - 2397 - 2392 - 2382 Upper border breakout: 2411 - 2421 Lower border breakout: 2403 - 2392Comment: Gold prices show uncertainty near key support at $2,400 during the European session on Monday. The precious metal remains on edge amid growing speculation that Republicans led by Donald Trump will win the US presidential election in November.Comment: Gold (XAU/USD) is under bearish pressure after breaking the key $2,400 level, currently trading below $2,390. Technical developments appear to be leading to further price declines, especially as there are no fundamental drivers supporting gold prices at this time. This can be related to market psychology and technical factors such as support and resistance levels.Comment: Gold prices extended their recent correction from record highs hit last week and fell to their lowest in more than a week on Monday. US President Joe Biden's withdrawal from the 2024 Presidential election has increased the chances of Donald Trump becoming the next US President, raising hopes of a looser regulatory environment.