With a strong weekly close the past week and a rally occurring during Monday trading session, Gold is now set to head further higher towards the 1,422.90/1,430.75 levels, its Jan 03'2011/Dec 07'2010 highs. This is coming on the back of a break and hold above the 1,392.25 level, its Jan 13'2011 high which we highlighted in our weekly analysis. A firm break above the 1,422.90/1,430.75 zone will resume its broader long term bullishness towards the 1,450.00 level and then the 1.500 level, all representing psycho levels. Its weekly and daily RSI are bullish and pointing higher supporting this view. Alternatively, below the 1,392.25 level and the 1,378.80 levels are required to annul its present bullish offensive and bring further downside pressure towards the 1,353.00 level. Further down, distant supports reside at the 1,307.60 level and the 1,300.00 levels, its big psycho level. All in all, with continued bullish offensive seen, further strength is expected.
Gold