Technical analysis by pips1000s about Symbol PAXG on 6/1/2025

Current Price:3,291 Key Levels: - Resistance:3,295, 3,300, 3,316 - Support:3,289., 3,279, 3,274. **Chart Observations: 1. Price Action:Gold is trading near the day's open with minimal volatility, suggesting consolidation after recent movements. 2. Trend: The price is hovering around the mid-range of the recent swing (3,274–3,316), with no clear directional bias in the short term. --- Fundamental Factors Affecting Gold on June 1, 2025 1. USD Strength/Weakness: - Gold is inversely correlated with the USD. Monitor the DXY index and upcoming U.S. economic data (e.g., ISM PMI, jobs report) for USD momentum. - Fed Policy Expectations: Any hints of rate cuts (due to slowing inflation or growth) could boost gold. 2. Geopolitical Risks: - Escalation in conflicts (e.g., Middle East, Ukraine) or global trade tensions may increase safe-haven demand for gold. 3. Inflation & Real Yields: - Gold thrives when real yields (bond yields minus inflation) are low. Watch U.S. Treasury yields and inflation data. 4. Central Bank Demand: - Ongoing gold purchases by central banks (e.g., China, India) could provide structural support. 5. Market Sentiment: - Risk-off sentiment (equity sell-offs, crypto volatility) may drive flows into gold. --- Key Takeaways: - Short-Term: Gold is range-bound; a break above 3,300 or below 3,274 could signal direction. - Long-Term: Fundamentals (Fed policy, geopolitics) remain supportive if risks persist. Next Week’s Catalysts: U.S. non-farm payrolls (June 6), Fed speeches, and geopolitical developments. Note Weekend liquidity is thin; expect sharper moves when markets reopen. Trade Setup 1. Breakout Long (Bullish Case) Trigger: Price closes above 3,300 (preferably with strong volume). Confirmation: RSI > 60 + MACD bullish crossover. Entry: 3,302 (after breakout retest). Stop Loss: 3,289 (below recent swing low). Take Profit: TP1: 3,316 (near-term resistance). TP2: 3,330 (psychological level, extended breakout). Why? A breakout above 3,300 could signal bullish momentum, especially if driven by: Weak USD (Fed rate cut expectations). Geopolitical tensions increasing safe-haven demand. TRADING IDEA 1. Breakout Long (Bullish Case) Trigger: Price closes above 3,300 (preferably with strong volume). Confirmation: RSI > 60 + MACD bullish crossover. Entry: 3,302 (after breakout retest). Stop Loss: 3,289 (below recent swing low). Take Profit: TP1: 3,316 (near-term resistance). TP2: 3,330 (psychological level, extended breakout). 2. Breakdown Short (Bearish Case) Trigger: Price closes below 3,274 (confirms rejection at highs). Confirmation: RSI < 40 + MACD bearish crossover. Entry: 3,270 (breakdown retest). Stop Loss: 3,290 (above recent consolidation). Take Profit: TP1: 3,250 (next support). TP2: 3,230 (if USD strengthens sharply). Why? A drop below 3,274 suggests sellers are in control, possibly due to: Strong U.S. economic data (delaying Fed cuts). Risk-on market sentiment (equities rallying). Risk Management Risk per trade: ≤ 1-2% of account. Adjust SL to breakeven if price moves favorably (e.g., +50 pips). Watch for news catalysts (Fed speeches, NFP on June 6). Alternative Strategy: Fade the Range (For Scalpers) Buy near 3,280, stop below 3,274, target 3,295. Sell near 3,310, stop above 3,316, target 3,295. Best Conditions for Entry: London or NY session open (higher liquidity). Avoid low-volume periods (weekend/Asian session).