Gold pulls sharply and then returns to a rhythm, with a good opportunity for long positions at midday

Hello everyone, I am Old Cat from Juejin. The gold market opened with a violent surge this morning, reaching a high of around $4690. Such a rapid rise indeed caught many friends off guard, and they couldn't jump in to buy at the first moment. But there's no need to regret; the midday trend has returned to a clear oscillation, and our opportunities are still abundant.

On the news front, market expectations for a Fed rate cut in March continue to heat up, combined with safe-haven buying due to geopolitical tensions, jointly driving the sharp jump this morning. However, after the quick surge, the bullish momentum weakened, and some profit-taking positions chose to close, which is the main reason for the midday consolidation.

Technically, on the 5-minute chart, the price encountered resistance near 4690 and pulled back, currently oscillating within a narrow range around 4660. The support level at $4650 is the retracement support after the morning rally, and it is also the confluence support area of short-term moving averages on the hourly chart, providing strong support; if this level is broken, we can look for a re-entry opportunity around 4645, with a stop-loss set at 4638. The area between 4680-4690 forms a clear resistance zone.

At midday, we adopt a low-long strategy, relying on the support at $4650 to set up long positions, targeting the resistance zone of 4680-4690; if the price effectively breaks below 4650, we can add positions around 4645, with a strict stop-loss at 4638 to control risk.

Disclaimer: This article reflects only the personal views and trading ideas of Old Cat from Juejin and does not constitute any investment advice. Trading involves risks; please trade cautiously and make decisions rationally based on your own risk tolerance.