3.26 Morning Brief on Gold

Yesterday, spot gold generally showed a pattern of rising sharply and then pulling back. In the early session, it surged close to the 4602 level, but the bullish momentum gradually weakened. In the evening, the price continued to decline, reaching a low near 4486.

Currently, the geopolitical conflict in the Middle East continues to escalate, and US-Israel military actions continue to boost market risk-off sentiment. Meanwhile, expectations regarding US inflation and employment data keep fluctuating and disrupting the market. With US Treasury yields and the US Dollar Index experiencing frequent short-term volatility, and amid the interplay of bullish and bearish factors, gold prices are likely to remain volatile and consolidate weakly in the short term.

From a technical perspective on the 4-hour chart, gold prices are firmly above the middle band of the Bollinger Bands and gradually approaching the upper band. Short-term moving averages are in a bullish alignment, providing strong support for the gold price. Although the KDJ indicator is at a high level, it still shows an upward divergence, indicating that bullish momentum remains. This pullback is more of a bullish consolidation rather than a trend reversal.

Operation reference: Gold can be bought in batches if it falls back to the 4475-4490 range, with targets around 4550 and 4580.