Technical analysis by SmartEdgeTrading about Symbol PAXG: Sell recommendation (1/8/2026)

By analyzing the **#XAUUSD (Gold Spot)** chart on the **4H timeframe**, we can observe that after the previous strong bullish impulse, price tapped into the **upper liquidity / supply zone near 4,520 – 4,550**, which is marked as the **higher-timeframe liquidity high** on the chart. Following this liquidity grab, Gold failed to sustain above the highs and started showing **clear signs of short-term weakness**, with bearish reactions and lower highs forming below the **4,456 resistance level**. The market is currently trading around **4,432**, where multiple reactions indicate hesitation and distribution after the recent upside move. This price behavior suggests that **buy-side liquidity has already been partially consumed**, creating a short-term imbalance. Based on the current structure, a **corrective pullback is expected** before any meaningful continuation. As illustrated on the chart, price is likely to **consolidate and grind lower**, targeting the **4,380 – 4,355 support zone**, which aligns with prior structure and unmitigated liquidity resting below. The projected downside move could be approximately **70 to 100 points**, allowing the market to rebalance after the aggressive push higher. This pullback would be considered **corrective**, not bearish, as long as price holds above the **major demand zone around 4,300 – 4,275**, which previously acted as a strong accumulation area. If buyers successfully defend these lower levels, Gold may then look for another attempt higher. However, a failure to hold above **4,355** could open the door for a deeper retracement into demand. This analysis will be updated as price reacts at the highlighted levels. Support with your likes and comments to motivate me to share more insights, and feel free to share your view on whether **Gold will resume its bullish continuation after the pullback or extend the correction further.**