Gold market analysis

"Gold Price May Fall Back After Forming a Double Top" 26/2/2026 11:27 Completed
The spot gold price rose to $5,210.57 at 1 p.m. yesterday, then fell and rose again, and reached $5,217.84 at 1 a.m. this morning. However, it failed to close above $5,200 and instead plunged sharply towards the end of trading in New York, hitting a low of $5,147.42. From the hourly chart, the upward trend of each wave being higher than the previous one since February 17 has changed. Yesterday's sharp drop has led to a lower high, and it remains to be seen whether it will turn into a downward trend. 

The large bearish candle formed on the hourly chart yesterday has its top at $5,206.25, which has become an important short-term resistance level. From the shape of this candle, there are three possible interpretations: one is that it will turn into a trend of each wave being lower than the previous one; the second is that it will turn into a narrowing triangle; the third is that it will form a new upward trend with the low point on February 24th as the starting point. From a risk perspective, the first scenario must be watched out for, especially the large bearish candle that appeared in the late New York session yesterday, which indicates that the selling pressure at $5,200 is heavy in the short term, and secondly, it reflects that the downward force is currently in control. 

Also, it is necessary to pay attention to whether a double top pattern has formed on the hourly chart. If it has, $5,093.59 will be regarded as the neckline. Once it is broken, the measured decline target will be $4,937.21. From a smaller 5-minute time frame, the gold price dropped sharply yesterday and then gradually rebounded, presenting a pattern of each wave being higher than the previous one. This indicates that the gold price is either in a downward trend or still in an upward trend, depending on the time frame from which one observes. It should be noted that the larger the time frame, the higher the potential risk and return; the shorter the time frame, the lower the potential risk and return, and the more frequent the trading signals will reverse, increasing the transaction costs. Therefore, to profit from the gold market, one should not be dominated by personal character but should select the appropriate time frame from a risk perspective and fully follow the market signals for trading. 

The above content is for reference only and does not constitute investment advice.