News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
"Long Squeeze" Backlash, Deleveraging Signals Amid Extreme Volatility
Summary:
Precious metals volatility remains elevated, with gold recently demonstrating pronounced features of high-leverage speculation and passive deleveraging. The extreme price swings appear to reflect a concentrated long-position deleveraging process rather than a trend reversal.
Sell
CLOSEDXAUUSD
End Time
4862.75
Entry Price
4529.00
TP
5025.00
SL
5020.49 +54.45 +1.10%
16225
Points
Loss
4529.00
TP
5027.05
CLOSING
4862.75
Entry Price
5025.00
SL
Fundamentals
During Thursday's trading session, the precious metals market faced another wave of concentrated selling. Spot gold retreated sharply from its intraday high of $5,006 to a low of $4,805, shedding over $200 within a two-hour window. Silver mirrored the weakness, plunging from $89.56 to $73.77, with volatility amplifying significantly over a compressed timeframe.
From a market microstructure perspective, this decline was not triggered by a singular fundamental catalyst. Rather, it appears to represent a repricing of overstretched long positions following the preceding parabolic advance. As market participants reassess the record-breaking rally since last year alongside the historic drawdown observed since early this year, the precious metals complex is likely to remain in a high-volatility regime over the near term.
Notably, the recent "rapid spike—sharp retracement" price pattern within narrow time windows indicates elevated leverage participation. In the absence of sustained incremental buying, leveraged longs become particularly vulnerable to forced liquidation during pullbacks, creating a cascading long squeeze dynamic.
Historical precedent suggests that following significant realized volatility expansion, markets typically require a period of consolidation to digest excessively concentrated positioning. Until such structural rebalancing occurs, the sustainability of any directional move will remain questionable. Overall, the current sell-off appears more consistent with technical or cyclical correction rather than a fundamental deterioration in precious metals' macro narrative; however, short-term trading risks have materially increased.
Technical Analysis
The 4-hour chart reveals that gold encountered decisive resistance near yesterday's high of $4,944, with bullish momentum visibly waning.
Price has decisively broken below the MA100, indicating a deterioration in short-term trend structure. The MACD fast line is converging toward the signal line from above, with a bearish crossover risk mounting. Concurrently, the Relative Strength Index (RSI) has breached the 50 neutral threshold into bearish territory, suggesting a defensive shift in market sentiment.
Initial downside support is identified at the $4,790 level, corresponding to the prior session's low. A breach below this zone would expose the next support cluster near $4,594, potentially attracting medium-term value-oriented longs.
To the upside, $4,945 remains the critical watershed. Until this level is reclaimed on a closing basis, any rebound is more likely to constitute technical relief rather than trend resumption. Further resistance is located near the Asian session high of approximately $5,024.
Trade Recommendations
Trade Direction: Sell
Entry Price: 4916
Target Price: 4529
Stop Loss: 5025
Valid Until: 23:55:00, March 1, 2026
Support: 4854/4827/4809
Resistance: 4945/4995/5001
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.