FX.co ★ GOLD Intraday Technical Analysis

Gold tested yesterday the upper limit of its medium term triangle at 1,625 and demonstrated a decline. It is actually testing the intermediate support of this one at 1,591 suggesting a rebound. However, a break of this level would free a large potential and come close to the lower limit of the triangle at 1,572.
Technical indicators provide sell signals but approach to oversell zone supporting the assumption of a rebound. Moreover, until the support is not broken, the hypothesis of a rebound is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
We recommend to buy the gold at the level of 1,591 with the 1st objective at 1,602 and then at 1,605. A breakthrough 1,588 will invalidate this scenario.