3.18 SimplexHi Afternoon Review: Rally Faces Resistance and Pullback, Key Support Levels Determine Bull and Bear Trends

In the morning session, gold attempted to rally but lacked momentum, reaching 5015 before quickly retreating. It successively broke below the middle line of the Bollinger Bands and the short-term moving averages, with a low of 4986. Currently, it is oscillating weakly around 4991, showing an overall pattern of rising first and then falling, with the short-term trend leaning towards consolidation and weakness. The battle between bulls and bears is intensifying.

Fundamentally, geopolitical tensions in the Middle East support safe-haven demand. The Federal Reserve's stance remains cautious, with rate-cut expectations fluctuating uncertainly. Coupled with the approaching major U.S. economic data release tonight, market sentiment is cautious and hesitant. Profit-taking at higher levels is causing gold prices to decline.

Technically, on the 5-minute chart, gold rallied to the upper Bollinger Band and then retreated, breaking below the midline and approaching the lower band. The Bollinger Bands are opening downward, indicating a clear short-term bearish signal. Currently, the price is near the critical support levels of 4980–4985; if these are broken, further declines are expected. If support holds, a rebound is possible.

Buy on dips and wait for stabilization at 4970–4980, adding gradually to long positions.
If the pullback extends to 4940–4960, continue to accumulate longs.
If the market strengthens directly, consider entering long positions around 4990.
Target levels are 5000, 5050, and above.