Technical analysis by softt_inc about Symbol PAXG on 2/12/2025

As the European session begins on Wednesday, the price of gold (XAU/USD) maintains its downward trend below the $2,900 mark, despite the absence of follow-through selling and its continued proximity to the all-time high reached the day before. The hawkish comments made by Federal Reserve (Fed) Chair Jerome Powell on Tuesday further depress the non-yielding yellow metal and draw some purchasers to the US Dollar (USD). In addition, a positive risk attitude encourages some profit-taking for the second day in a row. Investors are still worried about the possible economic effects of a global trade war and US President Donald Trump's trade tariffs. Furthermore, geopolitical worries are still driving the price of gold, which is a safe haven. Additionally, traders were hesitant to make large wagers and instead chose to hold off until later today, when the most recent US consumer inflation data is released. As a result, bearish traders should exercise caution until it is confirmed that the XAU/USD's long-standing upward trend has petered out. Technically speaking, the yellow metal has been declining due to overbought conditions. Any more decline, however, might still be viewed as a buying opportunity and would be restricted to the $2,855-2,850 range. Support around the $2,835 region, which is close to the 4-hour EMA, comes next. If it is broken, this might push the XAU/USD closer to the $2,800 level. Conversely, bulls may now hold off on making new wagers until they see a rise back above the $2,900 immediate hurdle. The gold price may return to the $2,942-2,943 range or the all-time high reached on Tuesday as a result of the ensuing increase. An extension of the recent, well-established upswing that has been observed over the last two months or so would be made possible by some follow-through buying.