FX.co ★ Gold technical analysis for May 23, 2014

Nothing has changed in our Gold outlook since yesterday. Price remains inside the triangle formation. As suggested by our previous analysis, the preferred strategy to follow is to be neutral and wait for a break out.

The price range of the triangle is tightening. Soon we will see a breakout. Above $1,310, the trend is bullish and $1,330 will be challenged. Below $1,280, the trend is bearish and $1,268 will be challenged with increased chance of breaking it.

So we wait before we see a breakout. The daily Ichimoku cloud is above current price and this means that an upward breakout has many chances of being short-lived as strong resistance after $1,310 is found at $1,330. Concluding, I remain neutral and I will trade only after a break out.