Technical analysis by TradingFX_Brian about Symbol PAXG: Buy recommendation (7/24/2024)

Brian hello everyone! Gold prices are looking to build on an earlier recovery above $2,400 during the Asian session on Wednesday, despite optimism surrounding the US dollar and US Treasury yields. Gold traders are now looking forward to preliminary global business PMI data for fresh trading impetus. All eyes are also on the important US Gross Domestic Product (GDP) report for the second quarter on Thursday and Personal Consumption Expenditures (PCE) inflation data for June on Friday to Learn more about gold price developments. The near-term technical outlook for gold prices remains favorable as the 14-day Relative Strength Index (RSI) continues to maintain an uptrend above the 50 level. The simple moving average EMA 34.89 still supports the continued uptrend, reinforcing the positive outlook for gold prices. On the upside, immediate resistance is seen at the static resistance level of $2,425, above which the previous lifetime high of $2,450 will be challenged. The next relevant upside price target is seen at the new all-time high of $2,484 reached last week. Additionally, gold prices will fall back to the 21-day SMA support at $2,383 if buyers fail to sustain the supply at $2,425. If selling pressure increases, gold prices could seek support from the 50-day SMA at $2,361, below which it will be difficult to avoid testing the psychological threshold of $2,350. Price ranges to note: Resistance: 2420 - 2425 - 2450 - 2484 Support: 2385 - 2400 - 2383 - 2361 - 2350Comment: Gold recovers for a second day in a row, trading back up in the $2,410s as “stagflation” fears mount. The term, which describes above-trend inflation coupled with weak growth and jobs data, is a portmanteau of “stagnant” and “inflation”.Comment: Gold builds on Tuesday's recovery gains and stays in positive territory above $2,410 on Wednesday. The pullback seen in the 10-year US Treasury bond yield helps XAU/USD hold its ground as market attention turns to US PMI data.Comment: Gold price finds some support ahead of the $2,390 level during the Asian session on Thursday. A generally weaker tone across the global equity markets lends some support to the safe-haven precious metal amid dovish Fed expectations. That said, the Trump trade bandwagon continues to underpin the US Dollar.Comment: Gold price continues losing ground for the second straight day and drops to a two-week low. The downfall could be attributed to some technical selling, though it is likely to remain limited. September Fed rate cut bets and the risk-off mood could lend support ahead of the US data.