Technical analysis by KellyLondon about Symbol PAXG: Buy recommendation (6/18/2025)

Gold may face tailwinds due to the current negative geopolitical developments around the world. Gold has risen sharply this year, up more than 20% and has repeatedly hit historical highs. With the influence of wars and geopolitical factors around the world, gold may rise even higher in the current context. I personally think that gold will rise to a price of $4,000 this year!At the same time, Bank of America is one of the institutions that is particularly bullish on the future of gold. In a report shared last week, the bank's experts said that gold may reach $4,000 per ounce in the next 12 months.Bank of America pointed out that as interest rates fluctuate and the US dollar weakens, investors continue to flock to safe-haven assets, and the rebound may continue. The bank also said that despite the rise in gold prices, investors are still underinvested in gold."We estimate that investors have allocated 3.5% of their portfolios to gold... which is still below the historical high in 2011," Bank of America assessed, suggesting that more capital from individual investors may be invested while the rebound continues.Likewise, while central banks have clearly increased their investments in gold in recent years, the bank's report noted that the proportion of gold they hold is close to 18%, below the all-time high during the Bretton Woods era in the 1970s.Nevertheless, according to the European Central Bank (ECB), gold is currently the second-largest reserve asset held by central banks, second only to the U.S. dollar.Another key driver may come from geopolitical developments, including the recent outbreak of the Israel-Iran conflict. After the first round of bombing, gold futures rose to $3,440, approaching its record price of $3,500. Oil price futures also rose due to the impact of the escalating conflict.Previously, JPMorgan Chase had envisioned a path for gold to reach $6,000, which included shifting 0.5% of U.S. foreign exchange assets to gold.So friends who regard gold as a long-term investment, the current volatility is nothing, it is a good time to start!