Gold after bouncing at resistance zone of 1155-1160(Gold at resistance zone) moved downwards towards support at 1105$.Currently Gold is lying between 2 support and 2 resistance zones(green and red lines respectively).
At this point Gold is in an established long-term downtrend (beneath 200 SMA).Short-term Gold is neutral.In order to establish a new uptrend or confirm the current downtrend gold needs to move above 1155-1160 resistance zone or below 1075 support respectively.
We believe that a significant move of gold price is in the cards.As we can notice in the weekly Gold Volatility Index chart ($GVZ), gold volatility after bottoming during last summer is now in an uptrend.
Currently we are neutral on gold.Above 1155-1160 gold will turn bullish and the next target will be 1190-1200.
Below 1075 gold will be bearish and next target will be 1025$