Gold is currently testing the upper limit of its medium term bearish channel at 1 612 and seems to initiate a decline. However, a break through these levels will release a good potential and initiate a violent bullish trend.
Technical indicators provide buy signals but forthcoming overbuy zone supports the assumption of a decline. 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 provide a bullish opportunity as soon as the gold breaks through its resistance of 1 612 with the 1st objective at 1 625 and then at 1 630. A breakthrough 1 609 will invalidate this scenario.