Technical analysis by Shavyfxhub about Symbol PAXG: Buy recommendation (11/11/2025)

GOLD ,the rally continues and the aim is to break above 4200$ ,but at the moment london gold buyers will have to prove that they can break and close 4150 level.using the Fibonacci strategy ,am hoping for 50% retracement of the rally from 3964 breakout level FUNDAMENTALS OF GOLD Gold's reclassification as a Basel III Tier 1 asset marks a significant upgrade in how regulators and banks view gold within global financial systems. Why Gold is Reclassified as Basel III Tier 1 Tier 1 Status Definition: Under Basel III, Tier 1 assets are the highest quality capital assets that banks can use to meet their core capital requirements. These assets carry a 0% risk weight, reflecting their safety, liquidity, and reliability as capital. Gold’s Historical Status: Gold has already been recognized as a Tier 1 asset for capital adequacy since the Basel I Accords in 1988, due to its status as a safe store of value with very low default risk. New Recognition (2025): Starting July 1, 2025, physical gold held by banks can be counted at 100% of its market value in regulatory capital calculations, instead of being subject to significant haircuts or lower classifications (e.g., previously it was treated as a Tier 3 asset with a 50% deduction). High-Quality Liquid Asset (HQLA) Label: This reclassification means gold is now officially recognized as a High-Quality Liquid Asset under Basel III, allowing it to qualify as part of banks’ liquidity coverage ratios (LCR), an important step for liquidity and capital management. Regulatory Shift: This reflects changing perceptions that gold is not just a commodity but a true monetary asset. It is increasingly accepted as a reliable reserve asset by central banks and financial institutions worldwide. Central Bank Adoption: This move aligns with continued aggressive gold buying by central banks, recognizing gold’s importance for capital reserves, systemic stability, and as an inflation hedge. Significance Banks can fully count gold toward core capital reserves. Reduces capital burden, improving bank balance sheets and financial resilience. Endorses gold as a strategic, monetary asset, not just a commodity investment. Encourages institutional demand for physical gold and gold-related financial products. Summary Gold was reclassified as a Basel III Tier 1 asset starting July 1, 2025, reflecting its highest quality capital standing with 0% risk weighting and full market value recognition. This elevates gold’s status to a High-Quality Liquid Asset (HQLA) for regulatory purposes, facilitating banks’ liquidity coverage and capital adequacy. The change signals a major regulatory and market shift, acknowledging gold as a core reserve and strategic financial asset in modern banking systems. #GOLD #XAUUSD #SHAVYFXHUB #METAL #xauu