Technical analysis by MMFlowTrading about Symbol PAXG on 5/7/2025

⚠️ Gold Ahead of FOMC – China Rate Cut Shocks Market as USD SurgesGold (XAU/USD) is facing a pivotal moment after a dramatic correction from $3,435 down to the 3,360s, triggered by a combination of surprising policy moves and rising macro uncertainty.🧭 Macro Recap: Why Did Gold Drop?🇨🇳 China unexpectedly cut interest rates by 10 basis points ahead of a key trade dialogue with the US.➤ This supports global liquidity sentiment but simultaneously strengthens the USD in the short term.💵 DXY surged, taking advantage of China's rate cut — adding pressure to gold.⚠️ Geopolitical tensions in South Asia (India–Pakistan) resurfaced but failed to lift gold.➤ This hints that the current correction is more dollar-driven than risk-off in nature.🏛️ All eyes now shift to FOMC later today, where Fed policy will dictate gold’s next major move.Will Powell surprise markets with dovish signals, or does this China cut hint at coordinated central bank play before a wider easing cycle?📊 Technical Outlook – Gold in Volatile ExpansionDespite the macro volatility, gold continues to respect key liquidity zones and high-volume clusters on the chart. However, momentum is broad and inconsistent — requiring traders to react to confirmed breaks, not early assumptions.🔺 Resistance Levels:3390 → 3402 → 3416 → 3425 → 3432 → 3444 → 3468🔻 Support Levels:3365 → 3356 → 3332 → 3314🎯 Trade Strategy – 7 May 2025 (FOMC Day)🟢 BUY SCALPEntry: 3355SL: 3350TPs: 3360 → 3364 → 3368 → 3372 → 3376 → 3380🟢 BUY ZONE (Mid-Term Opportunity)Entry: 3332 – 3330SL: 3326TPs: 3336 → 3340 → 3344 → 3348 → 3352 → 3358 → 3365⚠️ Key BUY Level: 3314 – 3312This is a critical level for bulls — aligned with 0.5 FIBO retracement and previous demand flip zone. However, a move here could invalidate structure and signal deeper bearish pressure. Use caution.🔴 SELL SCALPEntry: 3430 – 3432SL: 3436TPs: 3425 → 3420 → 3415 → 3410 → 3400🔴 SELL ZONE (High-Risk Short)Entry: 3468 – 3470SL: 3474TPs: 3464 → 3460 → 3455 → 3450 → 3445 → 3440 → 3430🧠 Final Thoughts:Gold remains range-bound but extremely reactive to macro news.Today’s FOMC meeting could be a game changer. Whether the Fed maintains its current stance or signals dovish pivot will determine the direction for the rest of the week.🎯 In times like this, it’s not about picking tops or bottoms — it’s about trading the reaction and protecting your capital.✅ Stick to SL.✅ Let price confirm.✅ Be prepared for high volatility spikes.Good luck, traders — and stay sharp.