Technical analysis by FXNEWSCLUB about Symbol PAXG: Buy recommendation (5/5/2025)

🔍 Technical Analysis (XAU/USD – Gold Spot, 1H Chart)🔹 Chart Structure & TrendlinesDescending Trendline Breakout: Price has decisively broken above the long-standing descending trendline, indicating a potential bullish trend reversal.Horizontal Support/Resistance:Key support zone: Around 3260–3270, shown with horizontal cyan lines and multiple bounce points (green arrows).Key resistance zones:Minor resistance at 3334.48.Strong resistance at 3358.62 (previous structural high).🔹 Price Action InsightsDouble Rejection & Breakout: After testing the descending trendline twice (red arrows), price finally broke above it with strong bullish momentum.Retest Expected: Price may retest the 3260–3270 support zone (previous resistance and trendline convergence), which aligns with standard breakout-retest-continuation behavior.Projected Targets:Target 1: 3334 (recent high/resistance).Target 2: 3358 (next major resistance).🔹 Bullish Structure ConfirmationHigher lows and higher highs are forming.Bullish engulfing breakout candle above resistance zone.🌐 Fundamental Analysis – Key Drivers for Gold (XAU/USD)🔸 Global Economic ContextU.S. Dollar Weakness: If recent U.S. economic data (jobs, inflation) shows signs of cooling, it weakens the dollar, boosting gold prices.Fed Policy Outlook: Markets are closely watching the Federal Reserve’s stance on rate cuts. Dovish signals (rate cuts or pause) tend to support gold due to its inverse relationship with real yields.🔸 Geopolitical & Safe-Haven DemandAny rise in geopolitical tensions (e.g., Middle East, Eastern Europe) increases demand for gold as a safe-haven asset.Recent market uncertainty may explain the breakout move shown on the chart.🔸 Inflation & Commodities CorrelationPersisting inflation keeps gold attractive as an inflation hedge.Rising oil prices also tend to support gold prices due to commodity correlation and inflationary spillovers.📈 Conclusion & OutlookTechnical Bias: Bullish (breakout confirmed with clean structure).Fundamental Bias: Mildly bullish to bullish, depending on Fed tone and macroeconomic prints.Short-term Strategy: Look for a retest around 3260–3270 as a potential long entry zone targeting 3334 and 3358.Risk Management: Use stops below 3250 to protect against false breakouts.