Gold Futures (GC) Weekly is Bull Flagging, But.....
Gold is currently in a flag similar to that experienced last March and April. Last year's flag broke down, very unusual for this formation (normally it is a continuation pattern). Most likely the breakdown can be explained by the strong ramp up in the dollar index last year. Also, gold seasonality is usually weakest starting in April - June.
This flag is very tight, and being very near the all time high of 2089.20 at the flag peak of 2085.4 -- so I am biased in thinking that this flag may not reverse, even should DXY show strength. Of course, there are numerous geopolitical and other macro events which can have a positive effect on gold, if they create uncertainty.
Key areas to watch. A break below 1985.60 and hold and it will signal another flag breakdown. A break above and hold of 2085.40 (flag peak) and it signifies a bull flag continuation. These are simple areas to watch and are significant.
This flag is very tight, and being very near the all time high of 2089.20 at the flag peak of 2085.4 -- so I am biased in thinking that this flag may not reverse, even should DXY show strength. Of course, there are numerous geopolitical and other macro events which can have a positive effect on gold, if they create uncertainty.
Key areas to watch. A break below 1985.60 and hold and it will signal another flag breakdown. A break above and hold of 2085.40 (flag peak) and it signifies a bull flag continuation. These are simple areas to watch and are significant.