Technical analysis by LucasMgoldview about Symbol PAXG: Buy recommendation (6/3/2025)

XAUUSD has recently shown a strong upward trend, supported by both a technical breakout structure and positive fundamental developments. After a prolonged rally from the lows of the previous weekend’s close, it has decisively broken through the key resistance zone between $3,365 and $3,370, which has now been clearly removed. With this breakout, the structure confirms the upward momentum and the expectation is to retest this newly formed support zone before continuing the uptrend.The price is currently around $3,368 and a pullback to the $3,365 to $3,370 zone will offer a high-probability buying opportunity. This aligns with classic price behavior: after a breakout, the market often returns to test the former resistance level, which has now turned into support. If we see it retest, it would confirm the technical setup for a continued move toward the projected target of $3,470.From a fundamental perspective, the Chinese Ministry of Commerce issued a statement refuting accusations from the US of violating the bilateral trade agreement (published on June 2, 2025), claiming these allegations are "groundless." According to the reached agreement, the US agreed to reduce tariffs on Chinese goods from 145% to 30% within 90 days. In return, China also pledged to lower tariffs on US goods from 125% to 10% over the same period. President Donald Trump stated over the weekend that China had not complied with the agreement and warned of increased tariffs on steel and aluminum this week.Additionally, the ongoing Russia-Ukraine conflict continues to escalate, increasing pressure on risk assets and supporting gold prices. Tim Waterer, Chief Market Analyst at KCM Trade, commented that with rising trade and geopolitical tensions, it’s no surprise that gold has started the new week with an upward trend.From a technical standpoint, the overall structure remains bullish. The breakout is clear and supported by volume. Any deeper pullback that breaks below $3,335 would invalidate the short-term bullish trend, as it would signal a failure to hold above the former resistance level and could mean the beginning of a deeper correction toward trendline support.In conclusion, the current market behavior suggests it is in the process of forming a bullish continuation, supported by the clear breakout above previous resistance, rising geopolitical and trade tensions.The price is likely to retest the breakout zone, offering a potential long setup forecasting a move higher if momentum remains strong. The technical picture is supported by future growth plans, making it a safe-haven asset to watch closely in the coming weeks to confirm the pullback and continuation.