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After breaking the intermediate resistance of the medium term bearish channel at 1,585, the spot rate made acceleration to the upper limit of this one at 1,625. It is likely to demonstrate a pull back on the intermediate support now before reaching the upper limit of the channel again. A breakthrough these levels will release a good potential and initiate a violent bullish trend.
Technical indicators do not provide clears signals, but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility. Moreover, the superior band increased level of resistance up to 1,625.
We recommend a "buy stop" when buying gold as soon as it has broken through its resistance of 1,625 with the 1st objective at 1,635 and then at 1,640. A breakthrough 1,622 will invalidate this scenario.
