Gold Price Analysis: Head-and-shoulders breakdown on 1H

• Gold's hourly chart shows a bearish reversal pattern. 
• Daily chart candles and indicators suggest scope for a stronger pullback.

Gold is trading in a sideways manner around $1,708 per ounce at press time, having hit a session low of $1,705 a few minutes ago. 

The hourly chart shows a head-and-shoulders breakdown. The bearish reversal pattern has created room for a sell-off to $1,694 (target as per the measured move method). 

The daily chart, too, is reporting a bearish Doji reversal pattern – the yellow metal fell nearly 1% on Monday, validating or confirming the bull fatigue signaled by Friday's Doji candle. 

The stochastic indicator has turned lower from the overbought territory, indicating scope for a notable pullback. 

The metal could soon find acceptance under the former hurdle-turned-support of $1,703 (Mach 9 high) and extend losses toward $1,694. Alternatively, a strong move above $1,715 would invalidate the head-and-shoulders breakdown and open the doors for a re-test of the April 23 high of $1,739. 

Hourly chart

Trend: Bearish

Technical levels