Gold technical analysis: Double top breakdown seen on daily chart
|- Gold's daily chart is reporting a double top breakdown.
- The bearish pattern has created room for a drop to $1,480.
Gold is looking south with the daily chart reporting a bearish reversal pattern.
On Friday, the yellow metal closed below the Aug. 30 low of $1,517, confirming a double top bearish reversal pattern.
The 5- and 10-day moving averages (MAs) have also produced a bearish crossover. Further, the US 10-year treasury yield seems to have bottomed out with a bullish engulfing candle on the weekly chart. The zero-yielding metal usually reacts negatively to the rise in bond yields.
All-in-all, Gold could drop $1,480 in the short-term, as suggested by the double top breakdown. On the way lower, the metal may find support at $1,492 (Aug. 22 low).
As of writing, the yellow metal is trading at $1,510 per Oz, representing 0.20% gains on the day.
Daily chart
Trend: Bearish
Technical levels
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