FX.co ★ Strategy of the day on GOLD

Gold is currently testing the intermediate resistance of its medium term bullish channel at 1.447 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1.457.

Technical indicators provide sell signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.

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 1.447 with the 1st objective at 1.437 and then at 1.435. A break through 1.450 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 1.447 with the 1st objective at 1.457 and then at 1.460. A break through 1.444 will invalidate this scenario.