Technical analysis by David_Thompson_9 about Symbol PAXG: Buy recommendation (12/29/2025)

In the short term, after gold broke below the key level of 4470, the short-term trend has switched from bullish to bearish, and the downside target of 4450-4430 has been successfully achieved. The strategy of selling on rallies is in line with the market rhythm. Gold prices plummeted by nearly 250 points intraday, with the current 4300 level becoming a key point of contention. From a technical perspective, although the price has broken through the 4380-4370 support level, it is still within an upward channel on the daily chart. This pullback is essentially an overbought correction triggered by a top divergence, and only triggered a short-term trend reversal to bearish. The 4300 level and the middle band form a support level. If the level is broken, the next target for the correction could be 4250-4200. If the level holds, the correction is likely nearing its end. From a fundamental perspective, the expectation of interest rate cuts remains unchanged, which is still beneficial to the bulls in the medium to long term. Therefore, it is not recommended to short at the 4300 level. Instead, it can be regarded as an inflection point for medium- to long-term bullish positions. It is suggested to establish a base position in the 4300-4310 range. The subsequent consolidation may take time, and a sudden rebound is unlikely. Trading Strategy: Establish long positions within the 4320-4325 range, with a stop-loss set below 4300. Hold positions for the medium to long term and wait for further gains. For short-term trading, adopt a "primarily long, secondarily short" swing trading strategy. For long positions in the 4320-4325 range, the initial target is 4360 (reduce position), then 4380-4400. If the price stabilizes above 4400, further targets are 4430-4450-4470. Key conclusion: The major correction may have ended, and the main focus is on recovering the 4300 level. Seize the medium- to long-term bullish opportunities by following the trend.