Technical analysis by DavidMarsh about Symbol PAXG: Sell recommendation (1/18/2024)

Gold plunged on Tuesday, completely erasing last month's gains and inching ever closer to the 50-day simple moving average, a key support indicator located slightly above the $2,010 area. Bulls must defend this technical floor tooth and nail; failure to do so could trigger a move towards $1,990, followed by $1,975. On the flip side, if buyers return and spark a bullish reversal, resistance emerges at $2,045-$2,050. Taking out this ceiling decisively could be difficult, but a breakout could create the right conditions for a rally toward $2,085, the late December peak. On further strength, XAU/USD could be on its way to retesting its record.