Technical analysis by Trader_BrianFX about Symbol PAXG: Buy recommendation (9/7/2024)
Trader_BrianFX

Based on the current chart, I see that gold prices (XAUUSD) are stuck in a tight trading range, forming a descending wedge pattern. This kind of pattern usually signals a potential breakout to the upside after a period of consolidation.From the market news, investor expectations are centered around the Fed’s interest rate decisions, with a strong possibility that they will either maintain or lower rates. This typically has a positive effect on gold prices since lower rates reduce the opportunity cost of holding non-yielding assets like gold.In the short term, if gold can stay above the key support level around 2487/ounce, there’s a good chance it’ll break out of the wedge and head towards the resistance level at around 2525/ounce. However, if it fails to hold that support, we might see some further correction before a recovery. My outlook is bullish, assuming the interest rate news continues to favor gold.