FX.co ★ GOLD Intraday Technical Analysis

Gold is presenlty testing the upper limit of its medium term bearish channel in 1681 and is likely to initiate a decline. However a breakdown of these levels will reveal significant potential initiating a bullish trend.

Technical indicators provide signals for Buy-deals but approaching to the overbuy zone confirms 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 indicates a bullish opportunity as soon as the gold will has broken its resistance in 1681 with 1692 and 1695 seen as first objectives. A breakdown in 1678 will reverse this scenario.