Gold Technical Analysis: XAU is threatening a drop below $1,200

• Gold (XAU) has charted a bear flag on the 15-min chart – a bearish continuation pattern – meaning a downside break would revive the sell-off from the high of $1,208.6 and allow a drop to $1,195. 
• The yellow metal is more likely to break below the flag support of $1,202, having created a bearish outside-day reversal yesterday. 

15-min Chart

Spot Rate: $1,204

Daily High: $1,205

Daily Low: $1,200

Trend: Bearish

Resistance

R1: $1,204.59 (Aug. 3 Low)

R2: $1,214.30 (previous day’s high)

R3: $1,217 (Aug. 10 high)

Support

S1: $1,200 (psychological support)

S2: $1,1195 (200-hour MA)

S3: $1,182.90 (Aug. 24 low)