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  • The bear flag on the daily chart is weakening the medium-term outlook. 
  • The level to beat for bears is the 1550 support. 
 

Gold daily chart

 
XAU/USD is trading in a bull trend above the main daily simple moving averages (SMAs). However, the metal broke below a bear flag weakening the outlook of XAU/USD in the medium term.
 

Gold four-hour chart

 
Bulls are attempting to form a base near the 1550 level and the 200 SMA on the four-hour chart. However, the market is debating whether to resume the main uptrend or extending the pullback down. The buyers would need a clear break above the 1570/75 resistance zone to establish a bullish bias. On the flip side, if the price fails to make any progress above the above-mentioned price zone, the metal could become vulnerable to bearish incursions. A break below the 1550 support could lead to 1540 and possible to 1525 if the bears gather momentum.  
 

Additional key levels