The commodity still managed to close higher the past week despite its Friday price hesitation. This brings to two weeks of gains since it reversed higher from the 1.307.60 level and now leaves the possibility of further gains towards the 1,378. 80 level. A clearance of that level will extend further gains towards the 1,392.25 level, its Jan 13'2011 high. We expect a cap at that level to turn the Gold back lower but if that fails, a push towards the 1.431.28 level and the 1,450.00 level could occur. Alternatively, below the 1,307.60 level will have to be traded to reverse its present bullish attempt and turn focus to the 1,300.00 level, its big psycho level. We expect this level to provide a strong support and turn the commodity back up on an initial test because of psychological importance. However, if it snaps, Gold should weaken further towards its long-term rising trendline at 1,288.75. All in all, with continued bull offensive in progress, further weakness is likely to occur in the new week.
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