The Golden Rectangle

For the last two months gold has been ping-ponging between support around $1180 and resistance near $1225:



To be sure, the $1180 level has been tested many more times than the $1225 resistance level. Given the extremely low levels of implied/realized volatility and the relatively tight rangebound trading pattern there is a good probability of a breakout from the range over the coming days.

Simply given the fact that the GLD printed a bearish engulfing candlestick and closed near session lows today offers a bearish short term view for the yellow metal over the next couple of trading sessions: