Technical analysis by Zayn_Muaath about Symbol PAXG on 5/13/2025

As of May 13, 2025, XAU/USD (gold) has experienced significant volatility, influenced by U.S.-China trade developments, central bank policies, and shifting investor sentiment. Here’s an updated outlook based on recent market activity and expert analyses.⸻📉 Recent Market Movements•May 12 Decline: Gold prices fell over 3% to $2,228 per ounce, marking the largest daily loss since April 23. This drop followed progress in U.S.-China trade talks, which reduced global trade tensions and diminished gold’s appeal as a safe haven. •May 13 Recovery: On May 13, gold prices rebounded to $3,254.39 per ounce, driven by bargain-buying as investors took advantage of lower prices. The earlier decline in gold was prompted by a temporary U.S.-China tariff truce that boosted demand for riskier assets and weakened gold’s safe-haven status. ⸻📈 Technical Outlook•Resistance Levels: Key resistance is observed at $2,726 (December 12 high) and $2,790 (all-time high). A breach above these levels could signal a continuation toward $3,009, $3,123, and $3,288. •Support Levels: Immediate support is at $2,582 (December 19 low), followed by $2,536 (November low), and the 200-day SMA at $2,511. A deeper pullback might retest $2,471 (September low). ⸻🔮 Expert Forecasts•Citi Group: Projects gold prices to consolidate between $3,000 and $3,300, with a short-term target of $3,150. •Jeff Gundlach (DoubleLine Capital): Anticipates a 20% rally, targeting $4,000 per ounce, citing increased market volatility and gold’s role as a safe-haven asset. •Société Générale: Identifies potential objectives at $2,250 and $2,360, with a target near $2,460, following a breakout above a multi-year rectangle pattern. ⸻🧭 Summary OutlookGold’s near-term direction hinges on several factors: •Trade Relations: Further developments in U.S.-China trade talks could impact gold’s safe-haven demand. •Central Bank Policies: Decisions by the Federal Reserve and other central banks regarding interest rates and monetary easing will influence gold’s appeal. •Geopolitical Events: Ongoing geopolitical tensions may drive investors toward gold as a protective asset. Given the current technical setup and expert forecasts, gold may continue to test higher resistance levels, especially if supportive economic and geopolitical conditions persist.