Technical analysis by Trade_and_Chill- about Symbol PAXG: Buy recommendation (12/29/2025)

XAUUSD is trading around 4,500 USD per ounce, easing slightly from recent highs after an extended rally. The current price action reflects a short-term technical consolidation, as traders lock in profits following the establishment of new record levels. The recent surge in gold has been driven by a combination of key macroeconomic factors. Geopolitical tensions remain elevated, particularly in the Middle East, while developments surrounding energy sanctions and trade flows in the Americas have increased risk aversion. These conditions continue to channel capital into gold as a preferred safe-haven asset. At the same time, expectations of looser monetary policy remain a critical pillar of support. Recent U.S. economic data point to slowing growth, moderating inflation, and a softer labor market, reinforcing the view that the Federal Reserve could begin an interest-rate cutting cycle next year. This environment reduces the opportunity cost of holding gold. From a technical standpoint, gold has broken above multiple consolidation zones and is now holding above a strong high-price base, suggesting that selling pressure remains limited. As long as key support levels are respected, the current pullback is viewed as constructive rather than trend-changing. In the near term, gold may continue to move sideways while the market awaits fresh catalysts. However, with persistent geopolitical risks and expectations of lower interest rates, the medium-term outlook remains constructive, leaving the door open for another upside extension once buying momentum returns.