FX.co ★ XAU/USD, GOLD

Hello traders, The D1 chart of the GOLD trading instrument. The month of March is coming to an end, and it is evident that they decided to shake out all those who believed in the endless rise of gold. Last week, the pressure intensified at a certain point. It all started very simply with the formation of a mirror level at 5067. The price settled below it, stayed there for a couple of days, and confidently dropped down. I assumed that a decline would occur, but only to the ascending line that could be drawn here, and a bounce up was expected from it. However, as it turned out, someone who moves the market decided otherwise, and this line was practically broken through without any delay. Then, on a smaller timeframe, it is easier to see how a test from below of this line occurred after the breakout. It is also visible on the daily chart, but it is more vivid on the four-hour chart. After that, the decline continued. I think it became quite bad for those who bought near the top because a very large distance has been covered. The MACD indicator crossed into the lower selling zone and is decreasing below its signal line. It was obvious that the price would break below the low of the previous growth wave, that is, below the 4379 mark, which happened. The area beyond this low point is a potential buying zone, especially since the CCI indicator is deep in the oversold zone. From there, the price quickly emerged upwards. Clearly, there was a fixation of these strong sales. A kind of inverted hammer or pin bar formed there, if you will. I assume that the price won't go further down for now, even if it drops later, new victims need to be accumulated first, and then the movement will continue. I anticipate such a gradual rise and a pullback upwards after a sharp decline. Overall, it is evident that metals will become more expensive over time, including silver, gold, and others. However, for those who buy them around the world, they need prices not at their peaks but cheaper. That's why they periodically push prices down to buy at a better price. So far, after coming out of the low zone, the price didn't immediately go up but made a pullback. I believe this is a pullback for the second wave of the younger four-hour period, and the third wave will go straight up to the line.