Gold prices could be headed upward, technical analysis of volatility trends suggests. The precious metal faces a possible bullish volatility breakout scenario as long as key medium-term pivotal support at $2,000/oz holds, Kelvin Wong, senior market analyst at Oanda, says in an email. Gold’s 20-day historical volatility has fallen to nearly a four-month low according to the Bollinger BandWidth indicator, suggesting that price movements have compressed into a low-volatility environment that’s ripe for a breakout scenario, Wong says. Positive momentum appears to be returning to the precious metal ahead of this week’s FOMC meeting, with the daily relative strength index’s momentum indicator forming higher lows since Jan. 17, the analyst adds. Spot gold is up 0.5% at $2,028.14/oz.