Technical analysis by FOREXcom about Symbol PAXG on 5/19/2025

Over the past four trading sessions, gold has shown oscillations of around 1% in the short term. For now, indecision is beginning to emerge in the price of the precious metal as market confidence gradually recovers. The CNN Fear and Greed Index is already holding near the "extreme greed" zone, and as confidence continues to rise steadily, this could become a problem for gold demand, as it remains the classic safe-haven asset.Potential Double TopPrice movements in recent weeks have formed a consistent resistance area at $3,400 per ounce, with pullbacks reaching the $3,200 zone. Currently, a potential double top pattern appears to be forming on the chart, with key support holding near $3,200. If bearish pressure becomes strong enough to consistently break below this level, the pattern could gain significant technical relevance and signal a potential trend reversal in the coming sessions.RSIThe RSI line remains oscillating around the 50 level, indicating a balanced momentum between buyers and sellers. This can be explained by the ongoing support zone that is holding the price in the short term.ADXThe ADX line is showing a similar picture, with readings increasingly close to the 20 level, which indicates that the strength of recent price movements is fading. This further supports the idea of continued indecision around the current support area.Key Levels to Watch:$3,200 per ounce – Critical Support: Possibly the most important level to watch, as it represents the lower boundary of the double top pattern and corresponds to a neutral price zone. Sustained selling pressure below this level could trigger a strong bearish bias and open the door to a new downward trend.$3,400 per ounce – Main Resistance: This is the historical high zone for gold. A breakout above this level could be interpreted as a continuation of the long-term bullish trend.Written by Julian Pineda, CFA – Market Analyst