Although GOLD rallied sharply to close higher the past week, it remains trapped in a range between the 1,544.35 and the 1,640.45 levels. In order for the commodity to extend its upside it will have to break and hold above the 1,640.45 level, its range top. This if seen will open up further upside towards the 1,670.70 level and then the 1,700.00 level. Its weekly RSI is bullish and pointing higher suggesting further strength. The alternative scenario will be for the commodity to return to the 1,546.95 level on price failure where a violation will aim at the 1,527.05 level where a breach will resume its broader medium term weakness and then pave the way for further declines towards the 1,500.00 level. Price hesitation could occur here but if that level gives way, expect the commodity to decline further towards 1,478.05 level. All in all, GOLD continues to hold on to its broader medium term downside though trading in a range.
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