XAU/USD Bullish Flag Eyes 4,260-4,408 Resistance Zone
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Gold's chart continues to trace a bullish flag pattern nested within its longer-term uptrend, a formation typically associated with trend continuation. The 4,000-4,120 band has emerged as the critical support shelf, with buyers stepping in on each retest since the pattern formed.
A breakout above the flag's upper boundary would target the 4,260-4,408 resistance zone, aligning with prior swing highs. COT positioning data shows speculative accounts still net-long, reinforcing the technical bias even as hawkish central bank expectations tied to 3.7% CPI create near-term volatility.
The structural setup favors bulls as long as price holds above 4,000, with a clean break of 4,120 likely to accelerate momentum toward the upper resistance cluster.