FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate resistance of its medium term bearish channel at 1 581 and seems to initiate a decline. However, a break through these levels will release good potential and will be able to reach the upper limit of this one - 1 591.

Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline is most likely. 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 gold has broken through its resistance of 1 581 with the 1st objective at 1 591 and then at 1 595. A break through 1 588 will invalidate this scenario.