Technical analysis by fxtraderanthony about Symbol PAXG: Buy recommendation (4/21/2025)

Hey traders! Let’s break down the current price action on Gold (XAUUSD) using both Wyckoff and ICT concepts, and tie it all together with the latest macroeconomic context. 🚀✨Wyckoff Methodology:Looking at the 4H chart, we see a classic accumulation phase that transitioned into a strong markup. The recent price action shows a clear spring (liquidity sweep) below previous lows, followed by a sharp bullish move—this is textbook Wyckoff manipulation, where smart money grabs liquidity before driving price higher. The current rally suggests we’re in the markup phase, with demand overwhelming supply.ICT Concepts:Liquidity Zones: The chart shows a sweep of liquidity below the recent consolidation, trapping late sellers before a powerful bullish displacement. This is a classic ICT move—liquidity engineered and then swept.Displacement: The large bullish candle breaking above the previous range signals a market structure shift (MSS) to the upside. This is a strong sign of bullish intent.Fair Value Gaps (FVG): The impulsive move up has likely left a fair value gap (imbalance) between 3335 and 3385.50. Price may retrace to fill this gap before continuing higher.Market Structure: The break above the previous swing high confirms a bullish market structure. As long as price holds above the 3335-3340 zone (50% retracement), the bullish bias remains intact.Technical Trade Setups:Bullish Scenario: Look for a retracement into the 50-61.8% Fibonacci zone (3335-3323) for potential long entries. If price forms a bullish rejection or bullish engulfing pattern here, it could be a high-probability setup targeting the recent high (3385.50) and the next extension at 3436.Bearish Scenario: If price fails to hold above 3335 and closes below 3320, we could see a deeper retracement toward 3284 (100% retracement) or even lower, but this is less likely given the current momentum.Market Sentiment:Bullish 🟢 – The strong displacement, liquidity sweep, and market structure shift all point to bullish sentiment. Buyers are in control, and any pullbacks into the FVG or key fib levels are likely to be bought up.Macroeconomic & Fundamental Drivers:Gold’s rally is being fueled by several key factors:CPI & Inflation: Recent CPI data shows persistent inflation, increasing demand for gold as an inflation hedge.Interest Rate Expectations: The market is pricing in potential rate cuts by the Fed later this year, weakening the USD and supporting gold.Geopolitical Tensions: Ongoing global tensions (e.g., Middle East, Ukraine) are driving safe-haven flows into gold.USD Strength: Any signs of USD weakness further boost gold’s appeal.Summary & Trade Plan:Gold is in a strong bullish phase after a classic liquidity sweep and market structure shift. Watch for retracements into the 3335-3320 zone for potential long setups, with targets at 3385 and 3436. Stay alert for any macro news that could impact sentiment, but for now, the bulls are in control! 🏆📈Disclaimer:This is not financial advice. Always do your own research before trading.