As has been the case in recent trade however, the decline has been met with quick recovery to previous levels. The result has been a series of higher lows in the longer term picture. The fact that gold's extraordinary volatility - trading in a range of as much as $100 per ounce in single sessions- has so far failed to break the overall uptrend is a bullish indication in itself.

The technical outlook suggests the market may confirm this trend in the week ahead. The most recent decline fits nicely inside of a Channel Down chart pattern, illustrated here on the 240-minute time interval to show the decline from the last swing high above $1,880 per ounce.

Friday's surge going into the close set the price at the top of the channel to place it in a good position for a breakout, which would confirm on renewed buying interest above $1,825 per ounce. Ideally this would occur on strong momentum without a retracement back inside the Channel Down chart pattern. A successful breakout would encourage the possibility of the brief move below $1,800 as a buying opportunity prior to an eventual move above the $1,920 level for another rally into record high territory.

Weakness in Monday's session would negate this breakout possibility in the near-term, and suggest a possible continuation of the sideways-to-lower range with a retest of the bottom of the channel near $1,750 per ounce.

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