Gold price is sitting at the lowest level in five weeks near the $1,850 mark. As FXStreet’s Dhwani Mehta notes, XAU/USD looks south amid Bear Flag.
Further downside pressure
Gold price confirmed a Bear Flag on Thursday after closing the day below the rising trendline support at $1,871. The bearish continuation pattern has provided extra zest to Gold sellers, as they challenge the critical 50-Daily Moving Average (DMA) at $1,855.”
“The downside bias remains favored, with a sustained move toward the January 5 low of $1,825 eyed should the $1,850 support give way.”
“On the upside, any recovery attempts will need to recapture the bear flag support-turned-resistance at $1,871. The next stop for Gold optimists is seen at around the $1,885 level, the static resistance.”
