Our outlook on Gold remains to the downside as it weakened for a third day in a row the past week. With that said, further declines is expected towards the 1,641.35 level. Below here will set the stage for further weakness towards the 1,604.10 level. We may see a respite here but if that fails to occur, further declines could follow towards the 1,522.55 level, its Dec 2011 low. A break of here will open the door for additional weakness towards its psycho level at 1,500.00. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, in order for Gold to halt its present weakness, it will have to break and hold above the 1,714 level. This if seen will target the 1,802.75 level, its Nov'2011 high. All in all, Gold continues to hold on to its nearer term strength.
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