Technical analysis by FOREXcom about Symbol PAXG on 6/4/2025

Over the last three trading sessions, gold has gained just over 3%, and is once again approaching the $3,400 zone, where historical highs are currently holding. For now, the bullish bias behind the precious metal has remained intact, as market uncertainty continues to rise steadily due to developments related to the trade war and the ongoing conflict in Ukraine.Risk aversion has started to increase following recent comments from Donald Trump regarding a potential new escalation with China if negotiations fail to reach an agreement. Additionally, the proposed peace deal for the Ukraine conflict appears to be more delayed than expected, which has caused CNN’s Fear and Greed Index to shift from the “greed” zone into “neutral,” reflecting a decline in short-term investor confidence.It is important to note that in this type of scenario, gold stands out due to its safe-haven status, and these types of events have acted as important catalysts to sustain the current buying momentum over the past few sessions.Uptrend Remains IntactSince the first days of January this year, gold has maintained a steady uptrend. So far, bearish corrections have been insufficient to break the formation seen in recent weeks. At present, the price is once again testing the resistance area marked by historical highs, and if it manages to break through this level, it could signal a stabilization of the upward trend in the sessions ahead.RSIThe RSI line continues to rise above the 50 level, indicating bullish momentum in the short term. If the line continues to climb, buying pressure could become more significant in the near term.TRIXAlthough the TRIX line remains above the neutral 0 level, its current downward slope suggests that buying momentum has entered a period of consolidation. Unless the line recovers, it will continue to reflect that the strength of the exponential moving averages is entering a short-term neutral phase.Key Levels to Watch:$3,400: Resistance located at recent historical highs. A breakout above this level could activate a stronger bullish bias and reinforce the ongoing trend.$3,300: A nearby support level aligned with the midpoint of a potential short-term horizontal channel. It may act as a barrier to further downside corrections.$3,200: A critical support level aligned with the ascending trendline. Selling activity below this level could put the current uptrend at risk.Written by Julian Pineda, CFA – Market Analyst