Bearish chart formation in gold threatens rally

A salesman chooses gold chains for people buying gold in a jewelry store.
Chaiwat Subprasom | Reuters

The massive rally in gold could soon come to a halt, according to chart analysts at Raymond James, who describe a bearish "double top" formation that could take the shiny metal back to earth. Here are the levels to watch.

"We do still believe there's a very good chance commodities in general, including gold, hit a multiyear bottom earlier this year, but in the near term the shiny stuff is approaching a make or break moment that current holders will need to monitor closely," analyst Andrew Adams wrote in a note to clients Wednesday.

Since closing at a six-year low of $1,050 in December of last year, gold futures prices are up 28 percent, trading at around $1,350, easily placing the commodity among the best-performing asset classes this year.