March 6th Spot Gold Morning Analysis

Cheng Jingsheng first reviews yesterday's trend: On March 5th, spot gold sharply declined during the U.S. session, reaching a high of around 5194 during the day, then quickly plummeted in the evening, breaking below the 5100 level, with a low of 5051 dollars, a significant daily drop. The main reasons were that the previous rally was too strong, profit-taking was concentrated, combined with a strengthening dollar and cooling expectations of Fed rate cuts, resulting in double pressure that caused gold prices to fall sharply.

Tonight, U.S. non-farm payroll data will be released, and the market is generally cautious and wait-and-see. The dollar remains relatively strong, continuing to suppress gold prices; however, geopolitical safe-haven sentiment persists. Excessive declines may attract bottom-fishers, so overall, the pattern is oscillating and weak, not a one-sided sharp drop.

Gold prices broke below the key 5100 level, indicating a short-term weak trend. Strong support is seen around 5050-5080; breaking below this could lead to further declines. Resistance is near 5150; rebounds to this level are likely to encounter resistance and pull back. Daily indicators are bearish, and in the short term, the market is mainly consolidating and repairing, so chasing shorts or blindly bottom-fishing is not recommended.

Morning trading strategy: Observe more, act less, buy low and sell high within the range. It is recommended to wait for a pullback to 5030-5050 to establish light long positions, targeting the 5100-5120-5150 range, with strict stop-losses to control risk. Wait for the non-farm payroll data to be released before determining the direction.

The above is only personal advice and for reference only, not investment advice. Please follow Cheng Jingsheng's layout for specific strategies! $XAU ‌#XAU