Technical analysis by FXNEWSCLUB about Symbol PAXG on 5/12/2025

Gold (XAUUSD) Daily Analysis – May 12, 2025📈 Technical Analysis🔹 Key Support Zone Holding:Price is currently reacting at a confluence of Weekly and Daily trendline support, located near the $3,200–$3,220 area.This zone is critical. As long as it holds, the bullish structure remains valid.🔹 Bullish Continuation Pattern:A falling wedge pattern (black trendlines) is forming, which is traditionally a bullish reversal pattern.A confirmed breakout above the wedge could propel price toward the $3,646 resistance level.🔹 Scenario Outlooks:✅ Bullish Scenario (Primary Probability):Price bounces from the support trendline.Breakout above the wedge confirms bullish momentum.Potential target: $3,646.❌ Bearish Scenario (Contingency):Breakdown below the $3,200 support area.Price may retest the lower trendline of the ascending channel.Potential downside target: $2,910.🔹 Trend Structure:The broader trend remains bullish, supported by the rising channel.Pullbacks are healthy unless price breaks and closes below key structural support.🌐 Fundamental Analysis🏦 Federal Reserve Policy Outlook:Recent Fed statements suggest a dovish tilt as inflation shows signs of cooling.Any indication of rate cuts or a pause in hikes enhances the appeal of non-yielding assets like gold.💵 US Dollar & Treasury Yields:A weaker USD and declining yields support gold prices.Watch for any shifts in dollar strength or macroeconomic data surprises.🌍 Geopolitical Landscape:Ongoing geopolitical uncertainties (e.g., Middle East tensions or potential conflict escalations) continue to fuel safe-haven demand for gold.🏦 Central Bank Demand:Continued strong demand from global central banks adds long-term support to gold prices.