Chen Junqi: The pullback in gold prices is a buying opportunity

On March 12, Gold, after breaking through the 5200-5205 level on Tuesday and experiencing a significant pullback, has overall shifted to a relatively strong oscillation. We emphasize that the pullback in gold is an opportunity to go long, especially when retesting near 5155, which can be an entry point for bullish positions.

Yesterday, we highlighted going long at 5155 directly. After a sharp decline to around 5140 during the US session and then rebounding, we again suggested going long around 5170. This indicates that during a correction, especially after a sharp decline and stabilization, even blindly chasing bullish moves can yield profits. In a sideways market, as long as we avoid greed, follow the rhythm, and identify suitable low points, there are opportunities to enter.

The short-term high is at 5240. During yesterday’s US session, the rebound was only up to 5200 before facing resistance and falling back. This morning, the price broke below 5250, with a low near 5125. This morning’s low near this level has become a very important intra-day dividing line. During the European session, if the price remains above this level, it indicates a short-term bullish trend; if it breaks below, the trend will weaken.

Therefore, the European session’s movement is crucial. It’s prudent to wait until the intra-day trend becomes clearer before seeking a confirmed entry opportunity in the evening. Currently, the trend suggests that the first retest near 5225 during Asian or European hours could be a good long entry. When a key level is first touched, it often provides strong support and is a good position to bet on a rebound. Above 5125, a long position should be attempted. If the European session continues without a rally, consider adjusting positions. The minor resistance above is around 5200, and if the price faces resistance on a rally, consider shorting.

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Editor: Chen Ping