Technical analysis by EXCAVO about Symbol PAXG: Buy recommendation (6/2/2025)

Economic Environment and Gold ValuationThe economic factors influencing gold prices remain pivotal, particularly as we navigate through June 2025. The recent strengthening of the US dollar has emerged as a significant contributor to the shifting dynamics in gold markets. Traditionally, an inverse relationship exists between the dollar's value and gold prices; a strong dollar decreases gold's appeal by making it more expensive for foreign investors.Inflation continues to be a cornerstone in understanding gold valuation. Historically, gold is viewed as an effective hedge against inflation, preserving purchasing power during periods when currency values are eroded. As inflationary pressures fluctuate, so too does gold’s attractiveness. The Federal Reserve's data release scheduled for June 11, 2025, will be crucial in gauging inflation's trajectory. Should inflation edge closer to the Fed’s 2% target, there may be downward pressure on gold. Conversely, any unexpected uptick in inflation could reinforce gold’s status as a safe haven. Moreover, Federal Reserve policy decisions play a pivotal role. The upcoming meeting set around June 6, 2025, presents a high probability of maintaining current interest rates. A pause in rate adjustments acts as a double-edged sword. It can sustain higher gold prices by indicating an economic environment still in need of accommodative monetary policy, while any signal toward future rate cuts can stimulate demand owing to the decreased opportunity cost of holding non-yielding assets like gold.Geopolitical influences also cannot be ignored. Political uncertainties, such as those arising from U.S. elections or Middle Eastern tensions, inherently drive market volatility, prompting a flight to assets perceived as stable, such as gold. Furthermore, global trade conflicts, particularly between major economies like the U.S. and China, compound existing uncertainties and elevate gold's appeal as an insurance against systemic risks.TAI am still waiting for targets of 3600+ We are now close to the resistance line, and I believe that any news about instability in the world will break it and send us flying upwards.Best Regards EXCAVO_____________________Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.