Technical analysis by therabbittrades about Symbol PAXG on 3/26/2025

Trade Idea 1: Short PositionSetup:The price is currently near an area of supply (highlighted in red on the chart) and has shown signs of rejection, forming a bearish candlestick pattern. The stochastic oscillator also indicates overbought conditions, suggesting potential downside.Entry:Enter a short position near the current price level of $3,079.Stop Loss:Place the stop loss above the area of supply at $3,120 to account for potential false breakouts.Take Profit Targets:First Target: $2,930 (near the 0.236 Fibonacci level).Second Target: $2,800 (near the 0.382 Fibonacci level).Trade Idea 2: Long PositionSetup:If the price retraces to the demand zone (highlighted in green on the chart) near $2,680–$2,700, this could be a strong area for a reversal based on historical price action and Fibonacci confluence (0.786 level).Entry:Enter a long position within the demand zone at $2,680–$2,700.Stop Loss:Place the stop loss below the demand zone at $2,640 to minimize risk.Take Profit Targets:First Target: $2,880 (near the 0.382 Fibonacci level).Second Target: $3,000 (psychological resistance level and previous swing high).Macroeconomic ConsiderationsGold prices are influenced by macroeconomic factors such as:Interest Rates: If central banks signal dovish policies or rate cuts, gold may rally due to its appeal as a safe-haven asset.Inflation Data: Higher inflation increases gold's attractiveness as a hedge.Geopolitical Tensions: Any escalation in global tensions could further support gold prices.Monitor news events and economic data releases closely to confirm directional bias before entering trades.