Technical analysis by mswhitetrader about Symbol PAXG: Sell recommendation (7/23/2024)

On Monday, spot gold prices continued to decline, with XAU/USD trading around $2,390. The precious metal peaked last week at a record high of $2,483.63, then fell to current levels. The US dollar gained strength after Wall Street opened, while stocks recovered after one of their worst weeks of the year. Optimism seems to be favoring the USD despite the political noise from the weekend. President Joe Biden has decided to resign from the presidential race, which has boosted hopes of a victory for Donald Trump, who is known to be more "pro-market". Meanwhile, upcoming headline US economic figures keep investors in wait-and-see mode. This week, the country will release its first estimate of second-quarter Gross Domestic Product (GDP), along with an adjustment to the Fed's preferred inflation measure for the first quarter, the Personal Consumer Price Index. (PCE). Additionally, the US will release June PCE inflation on Friday. Interesting price areas: Buy zone: 2373 - 2371 Stop loss: 2369 Sell zone: 2431 - 2433 Stop loss: 2437 Buy scalp: 2386 - 2384 Sell scalp: 2422 - 2420 Resistance : 2420 - 2431 - 2436 - 2450 Support : 2385 - 2375 - 2368 - 2360 Upper border breakout: 2411 - 2421 Lower border breakout: 2394 - 2384Comment: Gold prices (XAU/USD) are struggling to capitalize on Tuesday's Asian trading session gains, despite remaining well above their lowest in more than a week hit the previous day. 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. Additionally, the People's Bank of China's (PBoC) surprise interest rate cut on Monday still supported the market's optimistic sentiment and became the main factor acting as a drag on precious metals This safe haven.Comment: Gold prices (XAU/USD) remain on the defensive, slightly below circular resistance at $2,400 during the European session on Tuesday. The precious metal remains under pressure amid solid speculation that Donald Trump could win the United States (US) presidential election in November.Comment: Gold recovered and traded above $2,400 on Tuesday after closing its fourth straight trading day in the negative on Monday. The pullback seen in US Treasury yields helps XAU/USD cling to modest daily gains despite the US Dollar's resilience.Comment: Gold prices are struggling to capitalize on the previous day's recovery from more than a week's low. The USD rose to its highest level in nearly two weeks on Wednesday and acted as a drag on the metal. A softer risk tone and dovish Fed expectations should limit the decline ahead of global PMIs.