Gold Plummets, Weak Rebound - Shorting Remains the Main Theme

Digging Gold Old Cat
March 19, 2026

The essence of trading is not prediction, but following the trend's footsteps and capturing returns that belong to you within controllable risk.

Gold maintained narrow range consolidation during midday trading, with prices repeatedly grinding within the 4840-4860 band. Overall, it remains in the recovery phase following yesterday's sharp decline, with relatively weak rebound strength and no strong reversal signals emerging. The pattern dominated by bears remains unchanged.

From a technical perspective, the price is under pressure from the Bollinger Band middle line and moving average resistance on the hourly chart. Rebounds have encountered resistance multiple times and retreated. Although the lower band shows slight upward curling, the overall opening remains diverging downward with a clear bearish trend. The 4865-4870 zone becomes the current key resistance band. If gold's rebound fails to break through this range, it will continue its downward trend. Support below is first seen at the 4820-4800 zone. A breakdown would further open downside space.

Strategy-wise, continue with the short bias. Enter in batches when gold rebounds to the 4862-4868 range, targeting first at 4830-4820, further targeting the 4800 level, with stops placed above 4880.

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Disclaimer: The above analysis is merely a personal trading perspective and does not constitute any investment advice. Markets carry risk; trading requires caution.