Brother Liang's Daily Gold Insights—March 12 Morning Review

Yesterday's market showed gold prices rising to around 5223 before encountering resistance and then entering a volatile pullback. Although there was an attempt by the bulls to rebound in the evening, a significant breakout was not achieved, and prices ultimately accelerated downward, seeking support around 5150.

From the market performance, the short-term bearish momentum has been largely released, and key support levels below are becoming clearer. The likelihood is that the current trend will not continue to deepen significantly; instead, it will mainly involve a retracement and consolidation phase.

On the data front, last night's CPI release showed unexpected resilience, directly reinforcing the Fed's short-term expectation to maintain high interest rates, which put pressure on gold prices. This is indeed the most immediate factor suppressing gold at the moment, but we still need to look beyond the surface to understand the underlying reasons.

From a medium- to long-term perspective, the logic of the rate-cut cycle has not been completely reversed, and the global easing liquidity trend still provides a supportive backdrop. Coupled with ongoing geopolitical uncertainties, the demand for precious metals as safe-haven assets remains solid.

In terms of trading strategy, consider gradually building long positions around 5125-5140, with upside targets at 5175 and around 5230.