Technical analysis by David_financial_analyst about Symbol PAXG: Buy recommendation (5/19/2025)

From the daily chart, the price of gold has shown a clear upward trend since the beginning of this year, but has recently begun to show signs of consolidation. The current price is trading in the $3,250 area, which is a certain correction from the high of $3,500. The RSI indicator shows that the current value fluctuates around 50, which is neither in the overbought nor oversold area, indicating that the market is in a relatively balanced state. The recent RSI indicator has stabilized after falling from a high level, suggesting that there may be potential for a new round of increases.From the perspective of support and resistance, the current price faces an important resistance level of $3,350 above; if it can effectively break through this level, it is expected to retest the upper level of the Bollinger Band of $3,378-3,392. The lower support is around $3,170, which is also the lower edge of the recent fluctuations.From the perspective of bulls, the price of gold is expected to continue to rise supported by safe-haven demand and expectations of a rate cut by the Federal Reserve. If the price can effectively break through the $3,350 resistance level, it is expected to retest the $3,500 high and even challenge the psychological barrier of $3,600. Factors supporting this view include ongoing geopolitical tensions, U.S. debt problems, and a possible weakening of the U.S. dollar.From a short-term perspective, if global trade tensions ease further and market risk appetite improves, gold's safe-haven appeal may be weakened. Technically, if the price loses the $3,170 support level, it may fall further to the $3,100 area, or even test the $3,000 round mark. XAUUSD XAUUSD XAUUSD XAUUSD