Technical analysis by PSD_Trading about Symbol PAXG: Buy recommendation (10/22/2023)

XAUUSD | The rally took prices to new highs XAUUSD MARKET ANALYSIS AND COMMENTARY - October 23-October 27 After opening at 1,926 USD/oz, international gold prices fell to 1,908 USD/oz, then continuously increased sharply to 1,997 USD/oz and closed this week at 1,980 USD/oz. The reason international gold prices increased sharply this week is due to the increasing conflict between Israel and Hamas, causing gold's role as a safe haven to increase sharply. After Hamas launched a terrible attack on Israel on October 7, many predicted that this conflict would only be a limited conflict between Israel and Hamas. But that argument became less convincing after the horrific explosion on October 17 at al-Ahli hospital in Gaza City, where many displaced Palestinians were taking refuge. But even before the tragedy at al-Ahli hospital, the scale of Hamas attacks and the ongoing reality in the Gaza Strip were changing the strategic calculations of the parties involved. Those changes are putting a full-blown conflict in the region at risk of breaking out, especially the risk of confrontation between Iran and Israel. If there is a confrontation between Israel and Iran, not to mention a full-scale war in the Middle East, it could destabilize the region, disrupt global markets, and cause great harm to civilians. , attracting American forces and perhaps even pushing Iran to weaponize its nuclear capabilities. Thus, the Israel-Hamas conflict still has many potential risks leading to a comprehensive war in the region, especially a direct confrontation between Israel and Iran. This could push crude oil prices up sharply, causing the world economy to face the risk of more instability and sharp increase in inflation in the context of monetary tightening with almost no room left. Therefore, gold will continue to be backed by the Israel-Hamas conflict. However, buying gold as a geopolitical safe haven has never proven to be sustainable. Therefore, gold prices will face the risk of a strong sell-off when the Israel-Hamas conflict temporarily subsides or prolongs without results. In addition to the Israel-Hamas conflict, the US's third quarter GDP data and September personal consumption expenditure (PCE) index will attract special attention from investors. Although the Israel-Hamas conflict may still influence gold prices, if these figures have a sudden increase/decrease, it will still have a strong impact on gold prices next week. TECHNICAL ANALYSIS XAUUSD Looking at the technical chart in frame D1, we can see that the gold price increased continuously from the threshold of 1810 to close to the round resistance mark of 2000, successively breaking through the resistance marks of 1885-1950-1985. Next week, if the geopolitical situation calms down, gold may re-enter the correction cycle. The trading plan for next week will consider the buying season around 1925, the selling season around 2010.