On March 12, gold prices broke through the key resistance level of 5200-5205. Although the subsequent pullback was significant, the overall trend has shifted to a stronger, consolidating pattern. We emphasize that any decline in gold presents an opportunity to initiate long positions, particularly when prices retreat near the 5155 level, where entering long is advisable.

Yesterday, we recommended going long directly at 5155. After an accelerated drop to around 5140 during the US trading session, prices recovered, and we again suggested entering long directly in the 5170 area. We indicated that buying on dips, especially after a sharp decline stabilizes, offers a chance to capture profits even with aggressive entry in a consolidating market. As long as one avoids greed and times their moves correctly, suitable low points provide actionable opportunities.

5240 marks the recent short-term peak. Yesterday's US session rebound stalled at 5200 before retreating. In early trading today, prices fell below the 5250 area, touching a low near $5125. This morning's low is now a critical intraday level. If prices hold above this level during the European session, it suggests short-term strength. A break below this level during European hours would indicate weakening momentum.

Therefore, the European session's price action is crucial. A prudent approach is to wait for a clearer directional bias to emerge during the day before seeking a definitive opportunity in the evening session, which is entirely acceptable. Based on the current price action, it is recommended to consider going long on the first dip towards the 5225 area during the Asian or European session. The first test of a key level often provides strong support, making it a worthwhile level to anticipate a rebound. A long position must be attempted above 5125. If the European session shows no sustained upward movement, then consider adjusting positions. Minor resistance is observed near $5200; consider short positions if rallies stall there.