Gold is currently testing the intermediate resistance of its medium term bearish channel at 1,665 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel to 1,685.
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 indicates a bullish opportunity as soon as gold has broken its resistance at 1,665 with the 1st objective of 1,675, then 1,680. A break through 1,662 will invalidate this scenario.
