Note

Gold Price Analysis: XAU/USD dives out of a bear flag despite President Trump's impeachment

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  • Gold dropped during the overnight trade despite the US political tensions. 
  • The 4-hour chart now shows a bearish continuation pattern. 
  • A renewed rally in the US yields could add to bearish pressures.

Gold is trading near $1,848 per ounce at press time, representing a 018% gain on the day. 

The yellow metal printed a low of $1,842 during the overnight trade and confirmed a bear flag breakdown, a bearish continuation pattern, on the 4-hour chart despite the political turmoil in Washington. 

The US House of Representatives impeached President Trump on Wednesday, charging the outgoing president with inciting the Jan. 6 attack on the US Capitol building. Notably, ten House Republicans broke with their party and voted for impeachment. 

According to a statement from Majority Leader Mitch McConnell, the Senate will not convene until next week to hold a trial for the president. 
So far, however, the metal has failed to draw haven bids. 

The flag breakdown confirmed during the overnight trade indicates that the sell-off from recent highs above $1,950 has resumed. As such, a re-test of the Jan. 11 low of $1,817 could be put to the test. 

The bearish case will strengthen if the US 10-year Treasury yield resumes the rally. The benchmark yield jumped from 0.90% to 1.18% in the six trading days to Jan. 12 and is currently seen at 1.085%. 

4-hour chart

Gold Price Analysis: XAU/USD dives out of a bear flag despite President Trump's impeachment

Technical levels

XAU/USD

Overview
Today last price 1848.99
Today Daily Change 0.15
Today Daily Change % 0.01
Today daily open 1848.84
Trends
Daily SMA20 1885.13
Daily SMA50 1865.8
Daily SMA100 1889.68
Daily SMA200 1842.43
Levels
Previous Daily High 1863.15
Previous Daily Low 1845.84
Previous Weekly High 1959.42
Previous Weekly Low 1828.27
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1852.45
Daily Fibonacci 61.8% 1856.54
Daily Pivot Point S1 1842.07
Daily Pivot Point S2 1835.3
Daily Pivot Point S3 1824.76
Daily Pivot Point R1 1859.38
Daily Pivot Point R2 1869.92
Daily Pivot Point R3 1876.69

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