Although Gold is vulnerable in the medium term, as long as it continues to hold above the 1,532.90/1,582.65 levels, its recent lows, immediate risk remains higher on correction. However, it will have to return above the 1,677.95 level to restart its corrective recovery towards 1,702.31 level, its Aug 25'2011 low. We expect this level to reverse roles and provide resistance thus turning the commodity back down. However, if taken out, further recovery strength should build up towards the 1,754.55 level, its Sept 23'2011 high. Conversely, the risk to this analysis will be a return to the 1,532.90 level with a decisive violation of there turning further downside risk towards the 1.500.00 level, its psycho level and then its July 01'2011 low at 1,478.05. All in all, Gold remains vulnerable to the downside medium term though presently on corrective recovery.

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