Technical analysis by AndrewsMarket-Mastery about Symbol PAXG: Buy recommendation (5/13/2025)

XAUUSD is currently trading around 3250, consolidating within a well-defined bullish flag structure after a strong impulsive rally. This flag pattern on the 12-hour chart reflects healthy profit-taking and reaccumulation after a significant upward move. The current price action is respecting the lower boundary of the flag, and with growing volume on bullish candles, the setup suggests a high probability of a breakout to the upside, targeting the 3650 region.From a macroeconomic perspective, gold remains in strong demand due to ongoing global uncertainties and persistent inflation concerns. The US CPI print remains sticky above 3%, keeping real yields under pressure and supporting gold's bullish bias. Furthermore, with the Fed expected to hold interest rates steady for longer, the market is starting to price in fewer rate cuts this year. This continues to undermine the USD and supports gold as a store of value. Additionally, rising central bank gold purchases and geopolitical risk premium are adding further tailwinds.Technically, we are watching for a clean breakout above the upper flag resistance around 3280–3300. A breakout with volume confirmation would open the door toward the psychological 3400 level first, followed by a push toward the 3650 target area. Momentum indicators are turning up, and price is showing signs of basing just above previous support levels, adding confidence to the bullish continuation scenario.Gold remains one of the strongest trending assets in 2025, and this consolidation is likely just a pause before the next leg higher. As global markets digest the impact of persistent inflation and macro volatility, precious metals like gold are likely to outperform. This flag formation provides a textbook continuation setup for traders looking to position with the broader trend.