Gold has been trading in a channel since July 2011. This is the third time that it reaches for the $1793 level. It has find strong resistance overhere. It is difficult to assert at the moment whether it will breach the resistance or will it return to the support level of around $1578.
Indicators such as MACD and Stochastic are signalling that gold is overbought. Nevertheless there is still small room to maneuver at the top. Even though the risk is high. Waiting for definitive direction will be wiser.
This week the USA is releasing its current account. And the Federal Reserve Chairman Ben Bernanke will meet with Senate Finance committee on Wednesday to focus on economic policy, fiscal cliff. If the news might result in a influence in further monetary policy, then gold prices could confirm a new direction.
At the moment, is looking more to the downside.