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.

Omkar Godbole FXStreet Contributor

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

XAU/USD

Overview
Today last price	1509.9
Today Daily Change	3.30
Today Daily Change %	0.22
Today daily open	1506.6

Trends
Daily SMA20	1520.45
Daily SMA50	1465.85
Daily SMA100	1390.12
Daily SMA200	1340.06

Levels
Previous Daily High	1527.83
Previous Daily Low	1502.95
Previous Weekly High	1557.03
Previous Weekly Low	1502.95
Previous Monthly High	1554.63
Previous Monthly Low	1400.9
Daily Fibonacci 38.2%	1512.45
Daily Fibonacci 61.8%	1518.33
Daily Pivot Point S1	1497.09
Daily Pivot Point S2	1487.58
Daily Pivot Point S3	1472.21
Daily Pivot Point R1	1521.97
Daily Pivot Point R2	1537.34
Daily Pivot Point R3	1546.85

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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