Bear Flag Breakdown Looms on XAUUSDGold (XAUUSD) is currently forming a clear bear flag pattern on the H1 chart, signaling a weak corrective move within a dominant downtrend. The 5-wave structure (1 to 5) inside the flag indicates limited bullish momentum. If the lower trendline breaks, gold could plunge toward the key support zone at 3,295 USD.
On the news front, the ceasefire agreement between Iran and Israel brokered by the U.S. has significantly reduced geopolitical risk, weakening the demand for safe-haven assets like gold. In under 48 hours, gold lost over 60 dollars, reflecting the market's rapid shift toward risk-on sentiment. Additionally, speculative money is flowing out of precious metals and into growth assets, adding further downside pressure.
Given this confluence of technical and fundamental factors, I lean strongly toward a bearish continuation, with a likely breakdown of the flag pattern. As long as price remains below the EMA 89 (around 3,342 USD), the short-term trend favors the bears.
Are you ready for the next leg down?
