Muyu March 25 Morning Strategy

On March 24, spot gold demonstrated an overall weak oscillation and consolidation pattern, neither continuing the extreme sharp decline from the previous trading day nor forming a strong reversal rebound.

Early in the session, gold prices opened slightly lower and weakened through oscillations. The intraday decline found support around $4,305 and stabilized. Subsequently, prices rebounded modestly through oscillation, ultimately closing near $4,440. Overall daily volatility remained relatively mild, with prices still in the low consolidation zone following the prior significant decline. The bearish dominance pattern has not yet completely reversed.

On the news front, sentiment remained relatively calm overall. Market core logic continues to be dominated by the Fed's hawkish stance. The Fed's rate-hiking pace has shown no signs of slowing, rate-cut expectations continue to be pushed further out, combined with the US dollar index and US Treasury yields maintaining elevated levels, keeping gold's holding costs elevated and continuing to suppress gold prices. Meanwhile, risk-off sentiment from Middle East geopolitical tensions has further cooled, with markets lacking new safe-haven buying support. Gold price upside momentum is clearly insufficient, and the news backdrop remains overall bearish.