Gold is presently testing the intermediate resistance of its medium term bearish channel at 1,570 and is likely to decline. However, a breakdown of these levels will release significant potential enabling to reach its upper limit in 1,610.
Technical indicators do not provide clear signals but as long as resistance is unbroken, the assumption of a decline is most true. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Considering previous events, the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,570 with the 1st targtes seen at 1,580 and 1,585. A breakdown of 1,567 will invalidate this scenario.
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