Technical analysis by XAUBanker about Symbol PAXG: Buy recommendation (12/16/2025)

Gold (XAUUSD) recently broke out of a strong neutral rectangle and cleared the 4260 resistance, delivering an impressive rally that nearly reached new record highs. After this surge, the market is now in a corrective phase, forming an interesting pattern that signals consolidation before the next major move. From the previous weekly low (PWL) to the breakout point at the resistance line, gold delivered a 2.18% rise. Conversely, from the previous weekly high (PWH) down to the current support zone at 4260, the correction measures 2.14%. This near-symmetry between the upward and downward moves often reflects a measured correction pattern, suggesting that the market is balancing prior gains before deciding on the next directional push. Such patterns typically occur in strong trends where price pauses to absorb liquidity and shake out weak positions. Current Market Structure Support Zone: (previous resistance turned support, highlighted in purple on the chart). Resistance Levels: First: 4300 (psychological barrier) Second: 4320 (conservative breakout level) Trend Context: Despite the correction, the broader trend remains bullish, supported by the prior breakout and strong fundamentals. Today’s U.S. economic news could act as a trigger for volatility. If data favors dollar strength, gold may retest the 4260 support zone, offering a prime opportunity for long positions. Conversely, weaker data could accelerate a rebound toward resistance levels.Two positions opened at 4301. TP 1 hit on 4320, runner still active with SL on BE with 4350 as target