Gold Monday Morning Analysis: Bottom Formation Completed at Low Levels, First Rebound Then Short from Highs

Diggin' Old Cat
March 16, 2026 05:32

Market patience is king; maintaining the rhythm is key to capturing profits.

At 5:32 this Monday morning, gold is about to open at 6:00. Last week closed near 5018. After falling from 5238, it bottomed out at 5009 and stabilized. Following consecutive declines, the bottom formation at low levels is basically complete, making significant further downward movement unlikely in the short term.

Technical analysis shows the hourly Bollinger Bands are contracting. Support at 5000–5010 is holding effectively. Today, the initial expectation is for a rebound to recover, targeting the resistance zone of 5080–5100. If 5100 does not break, the market remains relatively weak; only a sustained hold above this level would indicate potential for further gains.

Fundamentally, strong non-farm payroll data and delayed rate cut expectations keep the US dollar relatively strong, exerting downward pressure on gold prices. Ahead of this week’s CPI release, the market remains cautious, with the main trend being a rally first, followed by a pullback, characterized by range-bound oscillation.

Trading strategy: On Monday, initially look for a low-level rebound. If 5000 holds and does not break, continue to watch for further rebounds. When price reaches 5100 and faces resistance, consider short positions from the highs. Trade flexibly and follow the trend.

——————
Disclaimer: The above analysis reflects personal opinions only and does not constitute investment advice. Trading involves risks; please exercise caution when entering the market.