3.23 Gold V-shaped rally recovers 4400, with a potential 300-point decline still possible during the US session

Gold opened lower near 4472 in the morning, briefly rebounded to 4536 before facing selling pressure and collapsing. Market sentiment completely deteriorated as bottom-fishing funds rapidly withdrew. During the European session, the bears accelerated the decline, breaking through the four key round levels of 4400, 4300, 4200, and 4100 consecutively, with a low of 4097. The intraday drop exceeded 8.7%, nearly erasing all gains since 2026, marking the largest single-day decline since March 1983. The bearish trend has fully dominated the market.

From a technical perspective, the daily candlestick closed as a large bearish body, indicating a complete trend breakdown; the hourly Bollinger Bands opened downward, with price weakly moving along the lower band, remaining under pressure below short-term moving averages. Short-term rebound momentum is very weak. On the 1-hour chart, after a sharp V-shaped decline, there was a quick recovery, with MACD forming a bullish crossover below the zero line, green bars converging, but with insufficient momentum. The RSI rebounded from oversold levels but showed no reversal signals. The rebound lacks buying support, with prices oscillating near the Bollinger Bands. Resistance is expected in the 4500-4550 zone above. For the US session, the strategy is not to bottom-fish; instead, it’s best to rely on short-term retracements to short in line with the trend.

Gold trading strategy: Short on rallies around 4500-4480 in batches, with a stop loss at 4520, targeting 4250-4200 with light positions and strict stop-loss measures.

Disclaimer: The above content is for personal ideas and viewpoints only and does not constitute trading advice.