Having halted its three-day declines and triggered higher prices on Thursday, risk of further strength is now likely targeting the 1,217.90 level, its July 13'10 high. A clearance of there will open the door for more gains towards the 1,265.05 level, its 2010 high and possibly higher. Its daily RSI is bullish and pointing higher supporting this view. However, if pullbacks materialize, we should see further weakness targeting the 1,203.98 level, its July 23'10 high with a cut through there allowing for more downside towards the 1,166.15 level, its Aug 02'10 low. Further down, support resides at the 1,156.80 level. All in all, Gold has triggered a recovery higher and now eyes the 1,217.90 level and beyond.

/