Gold is moving in a medium-term trading range approaching its upper limit in 1715 indicating a possible decline. However, if these levels are passed through, the significant potential will be revealed resulting in a beginning of a bullish trend.
Technical indicators provide signals for Sell-deals supporting the assumptions of a decline that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to the previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance in 1715 with 1725 and 1730 seen as its first objectives. A breakdown in 1710 will reverse this scenario.
