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
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Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
