Gold Price Analysis: XAU/USD raises a bear flag on the 4-hour chart
|- Gold gains ground in Asia as the US 10-year yield extends overnight drop.
- The metal looks to be charting a bear flag downside continuation pattern.
Gold is currently trading near $1,860 per ounce, representing a 0.37% gain on the day.
The bounce from Monday's one-month low of $1,816 has taken the shape of a bear flag pattern on the 4-hour chart. A bear flag is a pause that often refreshes lower, recharging bears' engines for a more profound decline.
A move below the lower end of the flag, currently at $1,840, would confirm a breakdown and imply a continuation of the decline from the Jan. 6 high of $1,959. The immediate support is seen at $1,816 ad $1,800.
A convincing move above the hourly chart resistance of $1,870 would invalidate the bearish setup.
4-hour chart
Trend: Bearish
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.