Commodities
Gold Price Stalls Amid Double Top Fears
The World Gold Council has reported strong central bank buying activity, which may have contributed to the recent rally in gold prices. However, according to technical analysis, gold's price action is showing signs of exhaustion and a possible double top pattern.
Gold's price has failed to remain above the recent swing high of $4,117, currently trading at $4,074. The 50-day EMA (Exponential Moving Average) is $4,063 and the 100-day EMA is $4,071, with moving averages coming together to provide support.
The Relative Strength Index (RSI) has relaxed to 52, indicating a loss of bullish momentum, which is bearish. The first level of support for gold is at $4,045, and the second is the confluent zone of support at $3,999.