Gold Technical Analysis: Double Top or Just a Pullback?

Gold erased Friday’s losses and extended its rally to another all-time high — but can the momentum last?

Fundamental Overview

Despite no major bearish catalysts, gold came under slight pressure on Friday, likely due to profit-taking amid improving risk sentiment. Still, the broader bullish picture remains unchanged.

The parabolic rise is making traders uneasy, but without clear headwinds, there’s little to stop the rally for now.

Markets remain focused on U.S.–China developments, with growing optimism around a potential deal. The key event to watch this week is Friday’s U.S. CPI report. While the Fed is now more concerned with labor market conditions, a hotter-than-expected inflation print could still lead to a hawkish repricing in rate expectations.

From a macro perspective, gold’s uptrend remains intact as real yields are likely to decline further given the Fed’s dovish stance. However, in the short term, any sharp rise in rate expectations could trigger a temporary correction.

Technical Outlook

Daily Chart

Gold recovered from Friday’s dip to post another record high before pulling back slightly. The absence of bearish catalysts continues to support the uptrend, though the move has become so steep that the daily timeframe offers limited insight — it’s now more useful to zoom in for shorter-term signals.

4-Hour Chart

Yesterday, gold failed to hold above Friday’s highs, raising the possibility of a double-top formation that could precede a larger correction. Sellers may start positioning near the recent peaks, targeting a pullback toward the major trendline and a break below the 4,185 level.
Conversely, a clear breakout above the highs would invalidate the bearish setup, opening the door for another leg higher.

1-Hour Chart

There’s a minor support zone near 4,280, reinforced by a short-term ascending trendline. Buyers are likely to defend this area, using it as a low-risk entry point for a potential continuation toward new all-time highs.
Sellers, meanwhile, will be watching for a decisive break below that level to add to bearish positions and aim for a deeper retracement toward the main trendline.

The red lines on the chart mark today’s average daily range, providing context for potential intraday volatility.

In summary, gold remains in a powerful uptrend, but momentum is stretched. A double-top could signal a short-term pause — while a breakout above recent highs would reaffirm the bullish trajectory.