Gold Price Analysis: Flag breakout suggests scope for a rise to $1,562
- Gold's daily line chart is reporting a flag breakout.
- The pair could revisit resistances at $1,562 and $1,573.
Gold is again looking north and could challenge resistance at $1,562.
The yellow metal 0.64% and closed at $1,556 on Wednesday, confirming a bull flag breakout on the daily line chart.
The pattern indicates the pullback from recent highs has ended and the rally from lows below $1,450 observed in December has resumed.
The flag breakout has opened the doors for a convincing move above the recent closing high of $1,573. However, on the way higher, the yellow metal will encounter resistance at $1,562 (Jan. 10 close).
At press time, the yellow metal is trading at $1,556 per Oz.