Saxo Group Videos

A bull flag has formed on the gold chart and could provide a strong signal to buy, says Clive Lambert.

Lambert notes that gold unlike other assets only saw a muted reaction when ECB President Mario Draghi on Thursday hinted at more QE to come later this year. But according to the charts, there could be an opportunity to buy, he adds.

A bull flag has formed over the past week, a sign of consolidation against the general trend, Lambert says, and the signal to buy would be if gold moves above 1172. Lambert's targets for the trade are 1192, 1205 and 1232 with a stop at 1158-1160.