The commodity closed strongly higher the past following through on the back of its bullish recovery started from the 1,307.60 level. A decisive break and hold above the 1,431.28 level is required to resume its long term uptrend. This will leave the pair turning higher towards the 1,450.00 level, its psycho level. Beyond the 1,450.00 level will call for further strength towards the 1,500 level, its psycho level. Its daily and weekly RSI remains bullish and pointing higher supporting this view. Alternatively, the risk to our analysis will be a return below the 1.392 level and the 1,389.70 level, its Feb 21'2011 low. A violation of those levels will turn the risk to the 1,378 levels. As long as the latter level holds as supports, our outlook on Gold remains higher. All in all, with continued bullishness pushing Gold further higher the past week, more upside risk is likely in the new week.
Gold