FX.co ★ Strategy of the day on GOLD

Gold is currently testing the intermediate resistance of its medium term bullish channel at 1.429 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.450.

Technical indicators provide buy signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.

Gold is currently testing the intermediate resistance of its channel, so we recommend 2 scenarios: The first one is the hypothesis of a decline - then we recommend a sell on the level of 1.429 with the 1st objective at 1.419 and then at 1.417. A break through 1.432 will invalidate this scenario. The second scenario is a break of its resistance - then we recommend a “buy stop” that means to buy the gold as soon as it has broken through its resistance of 1.429 with the 1st objective at 1.440 and then at 1.443. A break through 1.426 will invalidate this scenario.