Technical analysis by FXNEWSCLUB about Symbol PAXG on 4/21/2025

📉 Technical Analysis – Gold (XAU/USD) – Weekly Chart🔹 Price Action & StructureCurrent Price: ~$3,420Gold has been on a strong bullish rally, breaking previous highs and trending upwards in a steep channel.The chart shows a long-term ascending parallel channel, with price currently nearing the upper half.There's a crucial breakout zone marked around $3,500 – a psychological and technical resistance level.🔹 Key LevelsImmediate Resistance: $3,500 – if a weekly candle closes above, it opens up bullish continuation.Next Target (TP): $4,083 – based on the breakout projection and mid-channel resistance.Further TP: $5,031 – top of the channel (longer-term target).Support Zone: $2,750 – highlighted in blue, a strong demand zone with past accumulation and breakout area.🔹 Technical Indicators to Watch (not visible but implied):Fibonacci Levels: The $3,500 zone could align with a major fib extension (likely 1.618 from previous swing).RSI: Likely in overbought territory on the weekly, hinting at possible short-term exhaustion or retracement.MACD: Likely showing strong momentum, but a bearish crossover on higher timeframe would confirm a pullback.Volume Profile: (not shown) could confirm if accumulation is happening above $3,500.🔹 Potential ScenariosBullish Breakout: If price closes above $3,500 and holds, a rally toward $4,083 is likely.Fakeout & Rejection: If price gets rejected from $3,500 zone, we may see a pullback toward $2,750 for reaccumulation.Profit Booking: After reaching $4,000+, profit booking could cause consolidation or a deeper correction.🌐 Fundamental Analysis – Gold Outlook🏦 Macro DriversGlobal Inflation: Persistent inflation has historically driven gold demand as a hedge.Interest Rates: Expectations of rate cuts by the Fed or other central banks in 2025 would favor gold prices.Geopolitical Risk: Ongoing global tensions (Middle East, Eastern Europe, etc.) tend to increase safe haven demand.Currency Weakness: A weakening USD supports gold, as it's priced in dollars.💹 Investor SentimentCentral banks are increasing gold reserves (China, Russia, etc.).Demand for physical gold is high, especially from BRICS nations as they explore de-dollarization.📉 Risk FactorsSudden hawkish stance by central banks could pressure gold.If inflation cools faster than expected, gold might see reduced interest as a hedge.Overbought technical could trigger short-term corrections.✅ ConclusionGold is currently in a strong bullish trend, testing a major resistance. A weekly close above $3,500 can push it to $4,083 and potentially $5,031 in the long term. However, retracement is likely if it fails to sustain above this level, with $2,750 acting as a key support zone.“Watch price action at $3,500 carefully — the breakout or rejection here could define the next 6–12 months of gold's direction.”