Gold technical analysis: Flatlined in Asia despite flag breakout

• Gold’s hourly chart shows a bull flag breakout. 
• Daily chart shows buyer exhaustion. 

Gold is struggling to shine this Thursday morning in Asia despite the bullish technical setup on short duration chart. 

The yellow metal’s hourly chart shows a bull flag breakout – a continuation pattern which often accelerates the preceding bullish move. 

Even so, gold is trading largely unchanged on the day at $1,418. 

The metal’s inability to rally despite the flag breakout on the hourly chart validates the signs of buyer exhaustion on the daily chart. 

The safe haven metal spiked to $1,438 levels in the Asian trading hours yesterday only to end the day with moderate losses at $1,419. Essentially, the metal created a candle with a long upper shadow. A similar candle was created on June 25 as well. 

As a result, the yellow metal looks set to retest the psychological support of $1,400. That said, a bearish reversal would be confirmed only if the price drops below $1,382, confirming a double top breakdown. 

Hourly chart

Daily chart

Trend: Pullback to $1,400 likely

Pivot points