Is $3000 the Next Stop for Gold? Double Top Formation in Play!Is $3000 the Next Stop for Gold? Double Top Formation in Play!
Gold (XAU/USD) is showing signs of a potential bearish reversal as it forms a Double Top pattern on the daily chart. After hitting an all-time high near $3,500, the metal has entered a sharp correction phase and is now hovering dangerously close to key psychological support at $3,200.
Technical Analysis Breakdown:
A clear Double Top pattern is forming on the Daily (D1) chart, with two peaks near the same resistance level — a classical bearish signal indicating bullish exhaustion.
If today’s daily candle closes below the $3,200 level, we could see a rapid decline toward $3,000 in the short to medium term.
The neckline for this pattern aligns with the critical support zone between 3196–3200, which is the key area to monitor for potential breakdown confirmation.
What’s the Smart Money Doing?
Investors are currently pulling out of gold and rotating into higher-risk assets like equities and cryptocurrencies, looking for higher yields and growth potential.
This shift in investment suggests that the current sell-off might not just be a technical correction, but also a sign of changing macro sentiment — particularly if the Fed continues with a hawkish stance and delays rate cuts.
Suggested Trade Scenarios:
🔻 If Daily Close is Below $3,200:
High probability sell setup based on the Double Top pattern
Potential downside targets: 3120 → 3050 → 3000
🔺 If Price Holds Above $3,200 and Bounces:
Watch for a retracement to 3250–3278 for potential reversal signals
Short-term BUY scalp towards 3300–3320 with a tight SL below 3190
What to Watch This Week:
Keep an eye on key US economic data, including CPI, PPI, and a Fed Chair speech, which could cause significant volatility.
The market is highly reactive right now — avoid emotional trades and wait for clear confirmation from the charts.
Risk management is essential, especially during these uncertain times.
Final Thoughts:
The Double Top pattern on Gold is becoming a significant technical signal for a potential trend reversal. A confirmed break below $3,200 could open the door for a deeper correction toward $3,000.
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