Technical analysis by FOREXcom about Symbol PAXG on 12/22/2025

During the latest trading session, a renewed and sustained bullish bias has remained in place across recent gold price movements, leading to gains of more than 2%. This advance has allowed gold to break above its previous all-time highs and move above the $4,400 per ounce area. For now, the prevailing buying pressure is largely driven by a decline in U.S. Treasury yields, which act as natural substitutes for gold as a safe-haven asset. This shift has supported a steady demand for the precious metal toward the close of 2025, as bonds become less attractive in the short term. As long as this dynamic remains in place, continued buying pressure may remain a key feature in XAU/USD price action over the coming trading sessions. Bullish Trend Stronger Than Ever Since the final days of August 2025, consistent gold price movements have allowed a bullish trendline to remain firmly in place as the dominant technical structure to watch. So far, no meaningful selling corrections have emerged within the trend that would suggest a loss of long-term buying strength, keeping this formation as the most relevant technical reference for gold in the sessions ahead. However, it is important to consider that as price continues to post new all-time highs, periods of indecision may begin to emerge, potentially opening the door to short-term corrective pullbacks. RSI While the RSI continues to post consistent readings above the neutral 50 level, confirming that buying momentum remains dominant, the indicator has also moved above the 70 level, which marks the overbought zone. This behavior may be signaling a potential excess in buying pressure, increasing the likelihood that selling corrections could begin to develop in the coming sessions. MACD Meanwhile, the MACD histogram is oscillating close to the neutral zero line, suggesting that short-term moving average momentum is beginning to reflect a state of indecision. This environment could translate into a period of consolidation in gold prices and may also open the door to short-term bearish corrections. Key Levels to Watch: $4,500 per ounce: This level represents the nearest psychological resistance and, in the absence of prior technical references, stands out as the most relevant barrier to monitor. Bullish moves that manage to consolidate above this zone could pave the way for a more aggressive upward trend toward the close of 2025. $4,365 per ounce: This level previously marked the all-time high zone and now acts as the nearest support. It may serve as a key reference in the event of short-term selling corrections in gold prices. $4,163 per ounce: This is the most relevant support level to watch and aligns with the 50-period simple moving average. Selling pressure that extends toward this area could trigger a more pronounced bearish bias, potentially putting the current bullish trendline at risk. Written by Julian Pineda, CFA, CMT – Market Analyst