Gold Price Analysis: Bear flag on 4-hour chart

• Gold's 4-hour chart shows a bear flag pattern. 
• A breakdown would imply a continuation of the pullback from $1,740.

Gold's bounce from the April 28 low of $1,690 has taken the shape of a bearish continuation pattern called bear flag, according to the 4-hour chart. 

At press time, the lower end of the flag is seen at $1,700 and the yellow metal is changing hands at $1,710 per ounce. 

A break below $1,700 would confirm the flag breakdown – a resumption of the drop from the April 23 high of $1,739 – and create room for a slide to $1,651 (target as per the measured move method). 

Alternatively, a move above $1,720 would invalidate the flag pattern. 

4-hour chart

Trend: Bearish

Technical levels