Gold is again looking north and could challenge resistance at $1,562.

The yellow metal 0.64% and closed at $1,556 on Wednesday, confirming a bull flag breakout on the daily line chart.

The pattern indicates the pullback from recent highs has ended and the rally from lows below $1,450 observed in December has resumed.

The flag breakout has opened the doors for a convincing move above the recent closing high of $1,573. However, on the way higher, the yellow metal will encounter resistance at $1,562 (Jan. 10 close).

At press time, the yellow metal is trading at $1,556 per Oz.