Technical analysis by TheForexFamily about Symbol PAXG: Buy recommendation (12/20/2023)

Gold prices rebounded above the resistance level of 2,040 USD/oz during the US session yesterday. Geopolitical tensions have become the main driver of gold price increases this week following developments in the Middle East. The Red Sea has become a breeding ground for instability, and it seems likely that this will continue to escalate. Therefore, if the protracted war in the Middle East is not resolved soon, the bullish price momentum of gold will still maintain. The weakness of the US dollar has also helped gold prices rise. Fed policymakers took a dovish tone this week and most of the speeches focused on the number of rate cuts needed in 2024, with only a few objections coming from Fed official Barkin when he thought inflation was persistent. US government bond yields also continued to face difficulties today when both 2-year and 10-year terms declined, which also benefited gold prices.