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