Gold price is currently testing the intermediate resistance of its medium term bearish channel at 1,650 suggesting a decline. However, a pull through these levels will allow it to reach the upper limit of its channel at 1,690.
Technical indicators provide sell-signals supporting the assumption of a decline in the short term. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market will indicate a bullish opportunity as soon as gold has broken its resistance at 1,650 with the 1st objective of 1,660, then 1665. A break through 1,647 will alter this scenario.
