Gold is currently testing the upper limit of its medium term bearish channel at 1,702 and seems to initiate a decline. Still a puncture of these levels will free up significant potential and initiate a bullish trend.
Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline is most likely. 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 show a bullish opportunity as soon as gold has broken its resistance at 1,702 with the 1st objective of 1,712, then 1,715. A break through 1,699 will change this scenario.
