Is gold forming a double top pattern?
Gold had been in a steep uptrend since November 10, when the price bounced off the crucial 200-day simple moving average (SMA). The latest rally seems to be faltering though after bullion failed to surpass its five-month high of 2,009, but the short-term oscillators suggest that buyers have not given up yet.
Should the bulls attempt to push the price higher, the recent five-month peak of 2,009 could be the first barrier for them to conquer. A break above that territory could bring the April resistance of 2,032 under examination. Surpassing that region, bullion could then challenge the April-May resistance zone of 2,049.
On the flipside, bearish actions could send the price lower towards the July resistance of 1,987, which could serve as support in the future. Further declines might then cease at the October support of 1,954. Failing to halt there, gold could challenge its November bottom of 1,932.
In brief, gold’s failure to post a fresh higher high after testing its previous five-month peak is increasing the odds of a double top pattern. Should that scenario materialize, it could be the beginning of a downside correction.
Copper Signals a Potential Turning Point for Commodity Markets
Weekly Recap and Forecast: Gold and Silver Rebound on Weak NFP Numbers. Crude Brent falls to $70 a barrel
The dollar: has the trend been broken?
Soft jobs report pressures dollar, gold surges, stocks mixed
Yen Volatility Heightened by Intervention Risk and Soft US Jobs
NFP Below Forecasts, Fed Bets Repriced - CPT Markets
EBC Markets Briefing | Crude prices up as inventory extended decline
