- The 15 minute gold chart shows a bear flag pattern.
- A breakdown will likely lead to greater selling pressure.
Gold is trading near $ 1,933 an ounce at time of release, which is a 0.25% gain on the day.
The rally in the yellow metal from the overnight low of $ 1,910 took the form of an inverted or bearish flag on the 15-minute chart.
Flags generally accelerate previous trends. As such, a deeper drop towards $ 1900 could be seen if the lower end of the flag, currently at $ 1925, is breached.
The Bear Flag would fail if the metal was accepted above $ 1,940.
15 min chart