Technical analysis by Eldric_Morran about Symbol PAXG: Sell recommendation (11/5/2025)

The price of gold fell more than 1% during the session on November 4, while the US dollar rose to its highest level in three months. The strength of the US currency comes from expectations that jobs data from the ADP and the ISM Services Index will show that the US economy remains strong - meaning the Federal Reserve has no reason to rush to ease monetary policy. Expectations are that the ADP report will reach +32K compared to -32K in the previous month, while the ISM Services Index will rise to 50.7. Both indicators are considered positive for the US dollar. As bond yields rise and the dollar strengthens, gold - a non-yielding asset - is under natural downward pressure. Technically, the downtrend is still evident. The downtrend line extending since mid-October is still a strong resistance, as the price is rejected every time it approaches the 3990 area. The support area around 3900 has been tested several times, and if broken, the decline could extend to the next target near 3780. Given the current trend, gold appears to lack the ability to recover sustainably. As long as the US dollar maintains its bullish momentum, XAUUSD will remain under pressure – and a deeper decline is only a matter of time.