3.26 Golden Evening Review: Signs of a Bottoming Out are Emerging, Good Opportunities for Low-Level Positioning Have Arrived
Today, the golden market continued its fluctuating trend, moving through a complete rhythm of 'rising and falling, probing and rebounding' throughout the day. The competition was intense, and by the end of the trading session, there was a slight recovery, significantly easing the day's weak pattern. In the morning session, the market first surged, hitting a high before being quickly suppressed by strong resistance above, leading to a rapid reversal downward; in the afternoon, the bearish forces briefly released, causing gold prices to accelerate down to the day's low, but the key support level was strong enough to hold, successfully maintaining the lower range. Subsequently, prices quickly touched the bottom and rebounded, slightly rising in the final stage, ultimately closing at a relatively high position, ending the ongoing weak downward trend.
On the news front, various factors intertwined, creating a complex operational atmosphere for the golden market. The geopolitical situation in the Middle East remains tense, with the risk of regional conflicts escalating. The safe-haven demand for gold continues unabated, providing solid bottom support for gold prices. In contrast, the economic data from the United States has shown an overall improvement recently, leading to a cooling expectation for the Federal Reserve to cut interest rates. The U.S. dollar index and U.S. bond yields have risen simultaneously, theoretically putting some pressure on gold prices. However, the downward momentum has noticeably weakened, failing to exert sustained and effective downward pressure on gold prices. This ebb and flow directly locked in the downward space for gold while prompting the market to gradually position gold at low levels, setting the stage for a rebound in gold prices.
From a technical perspective, bottoming signals are becoming increasingly clear and credible. Gold prices successfully stopped their decline and stabilized near the lower track, with the Bollinger Bands' lower track gradually flattening, indicating a clear slowdown in the short-term downward trend, and the downward momentum is gradually depleting; the MACD indicator's green bars are continuously shortening, and the fast and slow lines are about to form a golden cross, reflecting a gradual weakening of the bearish forces with initial signs of a bullish counterattack; the RSI indicator is also recovering upwards from the oversold zone, with rebound momentum steadily accumulating. Although the short-term moving averages still show a bearish arrangement, with pressure remaining, the strength of support below has become increasingly solid, gradually highlighting opportunities for long positions at low levels, and cautious participants should seize the timing.
In terms of operations, one can gradually position in the 4400-4420 range, strictly set stop losses, and aim for targets around 4480-4530, taking advantage of this rebound trend. #xau