Technical analysis by xxChartWhizxx about Symbol PAXG: Sell recommendation (6/3/2025)

The chart presents a pivotal moment in Gold (XAU/USD) on the 1-hour timeframe, as price reacts to a key structural zone. After a strong impulsive bullish move earlier in the session, price rallied sharply toward the $3,370–$3,385 range. But now, a visible retracement has pulled it back into a well-defined support zone that previously acted as resistance.At this moment, the market is at an inflection point — visually represented by the orange confluence circle, where the current price intersects a previous consolidation breakout level and sits right above a deeper support band.What's happening technically?Price is now retesting the purple support box, which overlaps closely with the base of the bullish breakout that occurred earlier. This is significant because it could function either as:Support confirmation: where the market "respects" the previous breakout zone, establishing it as a new demand area and thus signaling the continuation of the uptrend.Fakeout zone: where the price loses this level, indicating that the prior bullish impulse was unsustainable, setting up for a deeper correction — possibly down toward the $3,335 or even $3,310 regions.The small candle forming at the support zone shows slowing bearish momentum, which could be interpreted as the first signs of stabilization. But the volume tells us more — earlier bullish momentum came with strong volume spikes, while the recent pullback seems to be on declining volume, which can often indicate profit-taking rather than full-blown reversal pressure.Interpreting the two potential paths:If price holds above the purple zone and shows bullish candle confirmation (like a bullish engulfing or a strong pin bar), there's a good probability that gold will resume its bullish leg, potentially retesting $3,385 and stretching further to $3,400+.However, if price decisively breaks below the orange confluence zone (especially below $3,350 with a large bearish candle and volume spike), then bears could regain control and drive it toward $3,320 or even lower. In this case, the earlier rally would appear as an exhaustion move or news-driven spike.