The commodity weakened further to close lower the past week, opening up further downside risk. Though a hammer candle is now in place and triggered a mild recovery the past week, a full fledged corrective recovery is required to prevent an early return to the 1,1532.90 level, its Sept 26'2011 low. Below here will pave the way for a run at the 1.500.00 level, its psycho level ahead of its July 01'2011 low at 1,478.05. Its weekly RSI is bearish and pointing lower suggesting further weakness. On the other hand, further recovery if seen will target the 1,702.31 level, its Aug 25'2011 low. We expect this level to reverse roles and provide resistance thus turning the commodity back down. However, if taken out, further recovery strength should build up towards the 1,754.55 level, its Sept 23'2011 high followed by the 1,827.85 level, its Sept 19'2011 high. All in all, Gold remains vulnerable to the down side medium term though attempting to recover higher.
Commodity