Gold is currently testing the upper limit of its medium term bearish channel at 1 625 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide sell signals and approach an overbuy zone supporting the assumption of a decline. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to previous events, the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1 625 with the 1st objective at 1 635 and then at 1 640. A break through 1 622 will invalidate this scenario.