Gold Technical Analysis: On track to post biggest weekly gain since August, flag breakout on weekly

• Gold is on track to print its biggest weekly gain in four months. 
• The metal is on track to confirm a bull flag breakout on the weekly chart. 
• The breakout has opened the doors for September highs above $1,555.

Gold is currently trading at $1,512 per Oz, representing a 2.22% rise on Monday's opening price and is on track to post the biggest weekly gain since August. 

The metal had rallied by 3.93 percent in the seven days to Aug. 11.

Breakout

The weekly chart is now reporting a bull flag breakout – a continuation pattern which indicates the pullback from September highs above $1,555 has ended and the rally from lows near $1,270 registered in April-May has resumed. 

The flag breakout has opened the doors for a re-test of $1,557 (September high). 

Supporting the bullish case is the weekly relative strength index, which has violated the falling trendline. 

With prices trading well above the flag resistance of $1,483, a breakout will likely be confirmed on a weekly closing basis. 

Weekly chart

Trend: Bullish

Technical levels