Gold is currently testing the intermediate resistance of its medium term bearish channel at 1 597 and seems to initiate a decline. However, a break through these levels will release good potential and will be able to reach the upper limit of this one - 1 620.
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.
Amid the current events the market will provide a bullish opportunity as soon as gold price has broken through its resistance of 1 597 with the 1st objective at 1 610 and then at 1 620. A break through 1 594 will invalidate this scenario.
