Mu Yao: 3.23 Gold Morning Review: Gold Under Selling Pressure from Both Bulls and Bears! Bearish Trend Established

Last week, gold overall presented a one-sided weakening trend, with prices continuously declining and adjusting from higher levels. Although there was a minor rebound at the beginning of the week, bullish momentum failed to sustain effectively. The technical bearish pattern has been established, setting the stage for continued declines in early trading this week.

U.S. economic data significantly exceeded market expectations, and market expectations for the Federal Reserve to maintain high interest rates or even implement further rate hikes continue to intensify. The attractiveness of dollar assets has substantially increased, directly suppressing gold priced in dollars. Global equity markets weakened in sync, yet safe-haven funds did not flow into gold. Instead, they concentrated on pouring into the U.S. dollar and U.S. Treasury bonds seeking more stable liquidity, further draining capital from the gold market.

On the 1-hour timeframe, gold prices are trading tightly along the lower Bollinger Band, with the lower band continuing to widen downward, indicating a clear bearish trend with limited upward rebound potential in the short term. Although the KDJ indicator has entered the oversold zone, there is no obvious reversal signal yet, and the downtrend still has room to continue.