FX.co ★ Gold technical analysis for May 22, 2014

Gold price has not made any real movement the last few sessions. Gold price continues to trade within the tightening range of the triangle. The triangle boundaries are at $1,287 and at $1,304. Gold price has a very low volatility for some time now and I expect this to end soon. I expect Gold price volatility to rise and Gold price to make a break out.

Gold price as shown in the chart above is inside the triangle and soon there will be no room left in the triangle to make the up and down moves it has been making. Soon we should expect a break out above or below the triangle boundaries. I prefer to be neutral and take action once a break out occurs.

I prefer to go short if Gold price breaks below $1,280 and I prefer to go long if price breaks above $1,310. Until I see such a break out I will stay neutral.