Technical analysis by kalayciatilla1 about Symbol PAXG: Buy recommendation (2/5/2025)

In our analysis yesterday, we shared the expectation of a **pennant formation** and then a movement towards the **Fib 0.618 level**. As expected, the price reached our target and is currently in the decision phase in the **2.853 USD** region. If it is sustained here, we may see the continuation of the upward movement, but profit taking would not be surprising in the short term. Price movements above this level in particular will be critical for gold to create a new trend. In today's economic calendar, the **ADP Nonfarm Payrolls** data draws attention. The expectation was at **148K** and the previous data was **122K**. If the data exceeds expectations, it may strengthen the dollar and put pressure on gold. In the opposite scenario, gold is likely to find support. In addition, the **Services PMI** data may affect the general course of the dollar. If the service sector signals a greater contraction than expected, we may see a weakening in the dollar, which may create a positive environment for gold. On the technical side, there is currently a struggle at the **Fib 0.618 level**. If the price can hold above this area, the upward movement may continue. However, a strong data in favor of the dollar may cut the upward momentum of gold and cause the price to pull back a little. Especially if there is a permanent close below the **2.853 level**, the possibility of correction may strengthen and we may see a movement towards the **2.793 support**. However, since the general trend is upward, possible pullbacks can be evaluated as buying opportunities. The data flow is quite important today, especially the signals coming from the US employment market will be effective in determining the direction of gold. A strong employment data may cause the Fed to be more cautious about interest rate cuts, which may suppress the short-term movements of gold. In summary, we are at critical levels and it is necessary to monitor price movements carefully.