Technical analysis by KevinNguyen-SimpleTrade about Symbol PAXG: Sell recommendation (2/12/2025)

📊 Market OverviewGold is currently testing the key 2883 support level, bouncing 10 points during the Asian session, as traders prepare for today’s high-impact US CPI release during the New York session.With inflation data set to shake the markets, today’s price action could decide whether gold continues its bullish rally or faces another major rejection at resistance levels.🔹 Key Fundamental Drivers:✔ Fed’s stance: No urgency for rate cuts, keeping the market in uncertainty.✔ DXY & Bond Yields: US Dollar Index (DXY) weakening, 10-year Treasury yields steady at 4.52%.✔ Stock Market: Risk-off sentiment returns as traders wait for key inflation figures.✔ CPI Expectations:Headline CPI (YoY): Forecasted +2.9%Core CPI (YoY): Forecasted +3.1%📌 Will gold finally break out, or are we set for another sharp reversal?📈 Key Technical Levels to Watch🔺 Resistance Zones:📍 2906 - 2915 - 2926 - 2942🔻 Support Zones:📍 2884 - 2870 - 2860 - 2840📌 A decisive move above 2910 could send gold toward 2926, while failure to hold above 2883 may lead to a retest of 2860.🎯 GOLD Trading Plan for Today🔴 SELL ZONE (Key Resistance for Shorts)📍 Entry: 2926 - 2928❌ SL: 2932🎯 TP: 2922 - 2918 - 2914 - 2910 - 2905 - 2900🔴 SELL SCALP (Short-term Sell Setup)📍 Entry: 2915 - 2917❌ SL: 2921🎯 TP: 2910 - 2905 - 2900 - 2896 - 2890🟢 BUY ZONE (Key Support for Longs)📍 Entry: 2840 - 2838❌ SL: 2834🎯 TP: 2845 - 2850 - 2854 - 2858 - 2862 - 2866 - 2870🟢 BUY SCALP (Short-term Buy Setup)📍 Entry: 2862 - 2860❌ SL: 2856🎯 TP: 2866 - 2870 - 2875 - 2880📌 Watch price action around 2910 closely before entering trades!📌 Risk Management & Key Considerations✔ Strictly follow TP/SL to manage risk in a volatile market.✔ Monitor DXY and Treasury yields for confirmation of gold’s trend.✔ Expect high volatility after CPI – adjust position sizing accordingly.📢 Breakout or Rejection? Where do you think gold is heading? Drop your thoughts below! 🚀🔥💠 Why GOLD Continues to Rise Despite Higher-Than-Expected CPI Inflation? Recent CPI data came in higher than expected, yet gold continues its bullish momentum. Here are key reasons why this might be happening: 🔺 Distortion in Housing Inflation Data According to the latest market insights shared by a group member, the sharp rise in housing and car prices in this month’s inflation report has been significantly influenced by last month’s major wildfire in California. 🔥 How does this impact CPI calculations? Housing accounts for 30% of the total CPI calculation weight, meaning any temporary price spikes can heavily distort the inflation report. The recent unexpected rise in housing prices may not accurately reflect actual market conditions, leading to a misleading CPI figure. Market participants might be pricing in a potential revision or normalization in future inflation reports, allowing gold to remain strong. 🔺 CPI Inflation Data May Not Reflect the True Economic Picture The housing sector's inflation spike is event-driven rather than structural, meaning the data could be overestimated. Traders and investors might be disregarding this CPI report as a one-time anomaly rather than a long-term trend. 📌 For more details, you can check the source here: 🔗 📢 What’s your opinion on this CPI distortion? Do you think gold’s bullish momentum will continue? Let’s discuss below! 🚀🔥