Volatility Breakouts usually signal trend reversal and so far we witness one in GOLD.
GOLD is developing a Falling Wedge pattern which has a Bullish implication if broken on the upside so I remain cautious in the meantime since we see a logical bounce off the important 1160 Support as marked on the chart. Lower stands 1140 Support area along with the 200-DMA at 1146 which is a very tough layer of Support to crack at least on the first attempt, IMHO.
I expect a retreat to 1200 Resistance first marked by the Trend line and the 21-Day MA.
The Bearish scenario is supported by the 21 & 72 - Day MAs Dead Cross, the sustained fall in the Rate of Change and the rise in the ADX reading above 26 which signal trend acceleration and at the moment the Trend is DOWN until proven otherwise.
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