Gold Price Analysis: XAU/USD drops, forming a bull flag on the hourly chart
|- Gold's hourly chart shows a bull flag, a continuation pattern.
- A breakout will likely accelerate the broader uptrend.
Gold is currently trading 0.21% lower on the day at $1,918 per ounce, having declined by 0.35% on Monday.
The pullback from $1,933 to $1,918 has taken the shape of a bull flag on the hourly chart.
A breakout would imply a rally resumption from the Oct. 8 low of $1,881 and open the doors to $1,980 (target as per the measured move method).
Alternatively, a flag breakdown would shift risk in favor of a drop to the psychological support of $1,900.
For now, the metal is trading in the red, tracking the strength in the greenback. The dollar index, which gauges the dollar's strength against majors, has increased from 93.00 to 93.18 alongside a $0.3% decline in the S&P 500 futures.
Hourly chart
Trend: Neutral
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.