Technical analysis by Camellia-TF about Symbol PAXG: Buy recommendation (12/16/2023)

Hello everyone! Are you curious about how the gold market will unfold next week? Let's dive into it! Gold prices have experienced a shocking drop of 11.9 USD compared to yesterday morning and are currently trading around 2019 USD at the time of writing. Despite the decline in the last trading session of the week, gold still maintains a weekly increase as the Federal Reserve (Fed) has adopted a more dovish stance, fueling speculation that interest rate cuts may begin soon. The correlation in the gold market will continue to be influenced by expectations from the Fed. "If the US economy does not improve by early 2024, it is a strong indication that gold will continue to be driven towards its all-time high." According to the CME FedWatch tool, the market is predicting a 70% chance of an interest rate cut. Therefore, it will be beneficial for gold prices as it reduces the opportunity cost of holding this non-yielding precious metal. The upward trend is expected to continue with a projected increase to 2060 USD, as long as the immediate resistance level at 2037 USD is not broken by buyers. On the other hand, if the support level at 2015 USD is breached by sellers, the price of gold could undergo a deeper correction.Trade active