Wang Jinxuan: Gold's Oversold Rebound Is Not a Reversal - Today's Gold Price Trend Analysis

Gold Price Trend Analysis:

On March 26, gold experienced nine consecutive days of decline, with the market showing a sharp collapse. Bulls are trapped in a life-and-death situation, while bears have seen their dominance wane, leading to a dramatic and thrilling overall trend. The current hawkish Federal Reserve policy still casts a shadow, with the dollar and U.S. Treasuries retreating from high levels. Coupled with geopolitical turbulence and the need for a rebound after gold’s oversold condition, gold has staged a fierce counterattack, initiating a strong rebound.

Yesterday, gold opened around 4413, quickly falling to about 4305. After the bearish momentum was exhausted, prices stabilized and rebounded from the lows. Buying interest gradually entered the market, pushing prices higher, closing near 4475, up 170 points for the day, successfully ending the previous nine-day decline and marking a significant counterattack. During the rebound, the bulls were unstoppable, pushing prices up to around 4602, hitting a daily high. The market then entered a high-level consolidation, with some profit-taking and exit by bulls, causing prices to dip slightly to around 4520. Thanks to strong buying support, the pullback was shallow.

Subsequently, the market entered a narrow range of consolidation, shifting from a strong upward trend to a high-level oscillation and stabilization. During the early hours, gold prices retreated. Based on the current trend, gold is likely to continue downward today, but key support levels may not hold, so it is recommended to wait for intra-day confirmation before trading during the U.S. session. This confirmation aims to validate the expected trend.

The main resistance level remains at the 4600 mark, which is both a short-term strong resistance and a short-term dividing line between bulls and bears. If gold faces resistance at this level and fails to break through, further declines are likely. Therefore, the trading suggestions for today are as follows: if prices rebound to around 4580-4585, consider short positions targeting 4530-4500, with a stop loss at 4600. If gold remains firmly above 4600, it may be better to wait for a pullback and exit.

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Editor: Chen Ping