A third week of upside gains following its reversal off the 1,307.60 level now leaves the commodity threatening further strength. We are biased to the upside in the new week as we look for Gold to strengthen further through the 1,392.25 level, its Jan 13'2011 high and then the 1.431.28 level. Further out, resistance lies at the 1,450.00 level. Its weekly RSI is bullish and pointing higher, supporting this view. Alternatively, below the 1,307.60 level will have to be traded to reverse its present bullishness and turn focus to the 1,300.00 level, its big psycho level. This level should provide a strong support if tested and then turn the commodity back up because of its 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 bullish offensive now seen, further strength is likely in the new week.
GOLD