With Gold reversing its previous week losses to close the week higher on Friday, further upside offensive is likely in the new week. In such a case, the 1,802.75 level, its Nov'2011 high comes in as the likely upside target with a violation of there turning risk towards the 1,827.85 level, its Sept 19'2011 high. Further out, resistance comes in at the 1,862 level. Its weekly RSI bullish and pointing higher, supporting this view. Alternatively, the risk to our upside view will be a return to the 1,666.90 level with a cut through here calling for a move further lower towards the 1,634.60 level, its Oct 24'2011. Below here if seen will expose the 1,595.75 level and then the 1,532.90 level, its Sept'2011 low. All in all, Gold has halted its two-week declines and set the stage for a possible recapture of the 1,802.75 level.
Join the Discussion