Gold market analysis

Gold price expected to hit bottom and rebound today  
March 6, 2026, 10:58 AM  

The gold price continued to fluctuate. Although spot gold reached a high of $4,541.5 during the early European session yesterday, it subsequently consolidated in a triangular pattern at higher levels before sharply declining. It briefly tested below $4,480 toward the end of the New York session and further dropped this morning. Fortunately, two attempts to break below $4,460 failed, with prices stabilizing at $4,462 and $4,464 respectively, triggering a rebound and forming a small double-bottom pattern. 

As seen on the hourly chart, the adjustment in gold prices from last Friday to this Monday slightly exceeded 61.8% of the previous rebound wave, and yesterday's rebound also surpassed 61.8% of that correction. However, it ultimately reversed within a single day, closing with a bearish candlestick, indicating that bears are currently gaining the upper hand. Nevertheless, the overall trend remains within a broad narrowing triangle, with the current price range inside the triangle further contracting. A breakout from the triangle would only be confirmed if prices fall below $4,447.81 or rise above $4,541.53, signaling a potential new trend. 

However, there is a higher likelihood that gold prices will rebound from today's lows. Although $4,460 is not a major or minor angle within the Gann Square, it still represents an angle following the 270-degree line from $4,410. The fact that prices tested this level twice this morning without breaking below suggests that it continues to offer some support. Additionally, from a technical pattern perspective, gold's movement could potentially form a double bottom with Monday's low. Assuming prices remain within the triangle, the upside rebound should be limited near the descending trendline at around $4,515. If viewed as a double-bottom pattern, yesterday's high of $4,541.5 would act as the neckline. Therefore, trading strategy for the day should focus on buying on dips, and stop-loss orders should be placed if prices fall below the descending trendline or the previous low of $4,447. 

The above content is for reference only and does not constitute investment advice.