Gold – double top breakout on hourly chart

Hourly chart

Formation – double top, head and shoulder on daily chart

Resistance - $1249.10, $1263, $1271

Support - $ $1235, $1227.12, $1217

• Double bottom breakout on the hourly chart has opened doors for a drift lower to $1240-1238 levels and adds increases the likelihood of the metal completing head and shoulder formation.
  

• The head and shoulder neckline is seen around $1217 levels.
  

• Drop in oil and resulting risk aversion and rise in demand for the safe haven treasuries (which offer positive yield) could weigh over metal.
  

• On the higher side, previous day’s high of $1258.05 could be challenged once again if prices rise back above double top neckline of $1249.10