Technical analysis by PSD_Trading about Symbol PAXG: Sell recommendation (10/13/2023)

XAUUSD | Bearish Winds Prevail but Turnaround Nears XAUUSD PRICE OUTLOOK - Gold prices fell after US CPI data was hotter than expected - Rising inflationary pressures increase Treasury yields and the US dollar, creating a challenging environment for precious metals - A look at key XAUUSD technical levels worth watching in the coming trading sessions Gold prices rebounded slightly after reaching multi-month lows. However, the upward momentum was halted when U.S. inflation data exceeded expectations. The strong U.S. dollar and higher odds of a rate hike in December led to gold and silver prices falling into negative territory. The market conditions for precious metals may be challenging, but there is some hope on the horizon. Recent statements from the US central bank suggest they may end their rate hikes soon, creating a more favorable environment for non-yielding assets. While gold and silver may face short-term bearishness, there is potential for a strong advance in the coming months, especially for gold. If unexpected economic obstacles arise, leading to a more cautious approach from the Federal Reserve, a significant rally could occur. XAUUSD PRICE TECHNICAL ANALYSIS Gold attempted to break through a resistance zone at $1,885 but was quickly rejected, indicating strong selling pressure. Traders should pay attention to price movement in the coming days for signs of continued weakness, which could lead XAU/USD towards $1,860. If there is a pullback, the $1,860 area may provide support, but a breakdown could result in a retest of the 2023 lows. On the other hand, if buyers step in and cause a strong rebound, initial resistance lies between $1,885 and $1,890. The bears are expected to fiercely defend this level, but if there is a breakout, the price could reach $1,905 (38.2% Fibonacci retracement level of the May/October decline). Further strength may embolden the bulls to challenge channel resistance near $1,925.