Gold Price Forecast: Monday's spinning top suggests buyer exhaustion

• Monday's spinning top candle is reflective of bull fatigue. 
• Bulls need to defend Monday's low of $1,657. 

Gold printed a seven-year high of $1,703 on Monday but closed the day with a spinning top candle, signaling buyer indecision in the market. 

A bearish reversal would be confirmed if prices close Tuesday under $1,657 (Monday's low), validating the spinning top candle and the bearish divergence of the 14-day relative strength index. 

A bearish close would open the doors for a pullback to key average support near $1,640. A violation there would expose the psychological support at $1,600 (10-week average). 

On the higher side, a close above the spinning top's high of $1,703 would indicate a continuation of the uptrend. At press time, the yellow metal is trading at $1,670 per Oz, representing a 0.4% drop on the day. 

Daily chart

Trend: Bull exhaustion

Technical levels