Gold Strategy: Sudden Flash Crash! Gold plummets over a hundred points, support breaks across the board, what’s next for the market?

3.26 Gold Strategy Afternoon Review: Spot gold fluctuated narrowly in the 4500-4540 range during the morning, with a temporary balance between bulls and bears. In the afternoon, the market experienced a sudden shift, with strong bear activity leading to a rapid drop in price, breaking through multiple key support levels, and plunging to a minimum of 4415.93, with a daily decline of over 120 points, hitting a new daily low. The current price is fluctuating around 4430, showing a slight recovery after a sharp short-term decline.

News: The core reason for this significant drop stems from strong pressure on the fundamentals. The latest U.S. economic data has exceeded expectations across the board, causing a considerable cooling of market expectations for the Federal Reserve to cut interest rates this year, further delaying the timing of rate cuts. The U.S. dollar index and U.S. Treasury yields have both surged sharply, directly applying fatal pressure on gold. At the same time, global market risk appetite has rebounded, with safe-haven funds continuously flowing out of the gold market, exacerbating the current round of selling.

Technical Analysis: From the 10-minute cycle, the Bollinger Bands were originally narrowing and flattening. After the price broke below the lower band, the Bollinger Bands quickly opened downward, fully opening the bearish trend; the middle band at 4494.83 has become a strong resistance level, with the price moving away from the middle band and in a severely oversold state. The short-term moving averages are in a bearish arrangement, with all supports breaking down, focusing on the daily low support at 4415.93 below. If this level breaks, it will open up greater downward space; for rebounds, the first target is the 4450 level, with strong resistance concentrated around the 4490 middle band. The strategy is to focus on short positions on rebounds, being cautious with blind bottom-fishing.

Trading Reference: Stabilizing around 4400-4430 can enter the market in batches, targeting 4500-4480$XAU #Gold records the largest weekly drop in 43 years.