Gold is testing the intermediate resistance of its medium term bearish channel at 1,649 suggesting a decline. However a break though these levels will allow it to reach the upper limit of its channel at 1,665. Technical indicators provide buy-signals but until that 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 offer a bullish opportunity when gold has broken through its resistance – 1,649 – with the 1st objective of 1,660, then of 1,665. A break through 1,646 will change this scenario.
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