Gold Plummets Over 100 Points: Post-Breakout Review Shows Complete Bearish Release

Diggin' Old Cat
2026.03.18

In recent days, gold has maintained narrow-range consolidation for an extended period. Our evening analysis provided a clear forecast: once the consolidation pattern breaks, regardless of direction, traders should directly follow the trend with orders. A breakout after prolonged sideways movement inevitably triggers significant one-sided price action. On the fundamental side, hawkish Fed expectations continue to intensify, with market pricing for June rate cuts cooling considerably. Combined with robust U.S. employment and inflation data, this reinforces expectations for sustained higher rates. The dollar index has rebounded strongly, directly suppressing gold valuations and risk-off appeal. Technically, the lower boundary of the prior consolidation range near 4960 represents a key psychological support level. After the price broke below this level, bearish momentum accelerated directly, not only breaching the 4900 handle but continuing to plunge over 100 points downward, completely aligning with our forecast that consolidation breakouts produce substantial moves. With such action, traders don't need to capture the full move—capturing just a segment of the post-breakout trend already produces considerable profits.

Currently, the bearish trend remains incomplete. While short-term lows show minor stabilization, both daily and hourly charts display one-sided downtrends, moving averages are bearishly aligned, and Bollinger Bands diverge downward with extremely weak bounce strength. The bearish-dominated structure remains intact. Upper resistance concentrates in the 4900-4920 zone, with key support below at 4830-4840, followed by the 4800 round-number level further down.

For midnight and subsequent trading, the clear strategy focuses on selling rallies. Long positions should only be light probe trades on oversold bounces. On rallies to the 4900-4920 resistance zone, directly establish short positions targeting 4850-4840, with stops above 4930. If price holds support at 4830-4840, light long positions can probe oversold bounce trades targeting 4880-4900, with stops below 4820. Overall, strictly follow trend-trading principles without blindly buying dips, awaiting key levels before establishing positions.

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Disclaimer: The above is merely personal price action review and does not constitute any investment advice. Markets carry risk; trade with caution.