The precious metal rebounded on Wednesday a day after price fell sharply. Gold prices are on track to recover close to 50% of the previous day’s losses. The rebound comes as the risk-on rally is starting to pause. However, gold will need to fully recover from Tuesday’s losses to maintain this short term uptrend.
Will XAU/USD form a Bearish Flag?
Price action on the 4-hour chart in gold indicates a potential for a bearish flag pattern. Currently, prices are testing the trend line. But a strong close above this trend line is needed to confirm the upside. Failure to post gains could see the bearish flag pattern coming into play. This puts the minimum downside target to 1440 support.
